Market News & Headlines >> Bayer to Buy Monsanto in $66 Billion Deal
German chemical and pharmaceutical manufacturer Bayer announced on Wednesday that it had agreed to purchase U.S. agrochemical and biotechnology giant Monsanto Co. for $66 billion in what would be the largest all-cash deal on record.
The deal, worth $128 per share was up from a previous Bayer offer of $127.50 per share. The deal values Monsanto’s equity at about $56 billion and Bayer is taking on about $10 billion in debt.
When and if the deal might finally close is not clear. The proposed merger is expected to face intense scrutiny from regulators in the U.S., the European Union and elsewhere. Monsanto chief executive officer Hugh Grant said Wednesday that the companies will need to file in about 30 jurisdictions for the merger. The transaction includes a $2-billion break-up fee that Bayer will pay to Monsanto in the event it fails to get regulatory clearance. Bayer expects the deal to close by the end of 2017.
Bayer stock traded as much as 4.7% higher on Wednesday, following news of the merger, but settled only 0.3% higher. Monsanto stock was trading 1.3% higher at $107.47 per share as of 12:20 p.m. CT on Wednesday.