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posted by cmn32480 on Thursday September 15 2016, @02:46PM   Printer-friendly
from the gimme-an-aspirin dept.

http://www.reuters.com/article/us-monsanto-m-a-bayer-deal-idUSKCN11K128

German drugs and crop chemicals company Bayer has won over U.S. seeds firm Monsanto with an improved takeover offer of $66 billion including debt, ending months of wrangling after increasing its bid for a third time. The $128 a share deal announced on Wednesday, up from Bayer's previous offer of $127.50 a share, is the biggest of the year so far and the largest cash bid on record.

The transaction will create a company commanding more than a quarter of the combined world market for seeds and pesticides in a fast-consolidating farm supplies industry. However, competition authorities are likely to scrutinize the tie-up closely, and some of Bayer's own shareholders have been critical of a takeover plan which they say is too expensive and risks neglecting the company's pharmaceutical business.

"Bayer's competitors are merging, so not doing this deal would mean having a competitive disadvantage," said Markus Manns, a fund manager at Union Investment, one of Bayer's top 12 investors, according to ThomsonReuters data.


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  • (Score: 0) by Anonymous Coward on Thursday September 15 2016, @09:07PM

    by Anonymous Coward on Thursday September 15 2016, @09:07PM (#402478)

    I understand the theoretical benefits you mentioned for merging, but if they didn't, would Monsanto be at any significant disadvantage with their seed business and Bayer with their chemical business, if they didn't merge. The fund manager's statement suggests that they are compelled to do this, but since they are separate industries, that isn't entirely clear to me that they are hurt by not merging. Upper management clearly makes out, but it isn't obvious that it is a business necessity.

  • (Score: 2) by EvilSS on Friday September 16 2016, @03:04PM

    by EvilSS (1456) Subscriber Badge on Friday September 16 2016, @03:04PM (#402816)

    Because other companies in their sectors have, and it's easier to sell the whole stack to the end customers.