Bayer $66 billion acquisition of Monsanto

27/6/2018
Public acquisition

$ 66 billion

Announced

27/6/2018


Overview:

  • Bayer has acquired Monsanto for $66 billion. 
  • Beside the transaction between Bayer and Monsanto, BASF has signed an agreement to purchase some of Monsanto's assets including entire seed business.
  • The German drug and chemical group's initial takeover offer for the US target, which is known for pioneering the development of GM seeds, of $122 per share in May, 2016 was rejected, as was a subsequent $125 per share bid in July, 2016, but the two parties continued to negotiate. 
  • Bayer's successful offer of $128 per share represents a 44% premium on the closing price of Monsanto's shares on the day prior to the German company's first bid.   
  • The German buyer has financed the takeover through bank loans and a $19 billion equity offering of mandatory convertible bonds and a rights issue with subscription rights.
  • BofA Merrill Lynch, Credit Suisse, Goldman Sachs, HSBC and JPMorgan have committed to provide the bank debt through a bridge financing of $57 billion. 
  • In 2016 ChemChina has made a bid $43 billion for Swiss agribusiness company Syngenta, gazumping Monstanto in the process.

Ben Naylor - Regional Editor 

Jurisdictions:

United States
India
Germany

Deal type:

Public acquisition

Practice area:

M&A

Governing law:

United States

Industry sectors:

Pharmaceuticals and life sciences
Food and beverage
Agriculture


Firms:

Party: Bayer AG Na (Borrower)


Party: Monsanto (Seller)


Party: Bayer AG Na (Acquirer)


Party: Credit Suisse (Lender)

Party: Goldman Sachs (Lender)

Party: HSBC (Lender)

Party: JPMorgan Chase (Lender)

Party: Bank of America Merrill Lynch (Lender)



Party: Bayer AG Na (Acquirer)


Party: Basf Se Na ON (Acquirer)


Party: Credit Suisse (Financial adviser)

Party: Bank of America Merrill Lynch (Financial adviser)



Party: Monsanto (Seller)


Party: Monsanto (Seller)