German chemicals company and drugmaker Bayer AG disclosed Monday the details of its offer to acquire Monsanto for $62 billion. If the Missouri company becomes a part of Bayer, it would create the world’s largest supplier of agrichemicals and genetically modified seeds.
Bayer’s all-cash offer, made on May 10, of $122 for each share of Monsanto is a 37 percent premium over the latter’s closing price of $89.03 on May 9, and is about 20 percent higher than Friday’s closing price of $101.52. Thursday last week, Monsanto said it had received an offer from Bayer but did not disclose any details.
Bayer CEO Werner Baumann said the merged entity “would draw on the collective expertise of both companies to build a leading agriculture player with exceptional innovation capabilities to the benefit of farmers, consumers, our employees and the communities in which we operate.”