Grassley spoke just before an industry-sourced Reuters report that Monsanto would reject Bayer’s 62-billion dollar bid to acquire Monsanto, and would seek a higher price.
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USA agriculture giant Monsanto late on Tuesday rejected German chemical and pharmaceutical company Bayer’s $62bn all-cash offer, saying it was “incomplete and financially inadequate“.
The Monsanto board said it viewed the bid of $62M as “incomplete” and “financially inadequate”.
Monsanto says there is no guarantee a deal will be made, and no timeline has been set for further discussion with Bayer.
Bayer’s proposed takeover of USA seed and pesticide giant Monsanto may be sidelined according to industry sources.
“We are pleased that Monsanto’s board shares our belief in the substantial benefits an integrated strategy could provide to growers and broader society”, Werner Baumann, CEO of Bayer AG, said in a release.
Monsanto chairman and chief executive officer Hugh Grant also said in a written statement that the initial offer failed to address potential financing and regulatory risks.
Buying Monsanto would create the world’s biggest supplier of farm chemicals and seeds. Monsanto’s genetically modified seed is responsible for a majority of the corn and soybeans plantation across the United States.
So long as the company is kept honest in terms of scrutiny and adequate regulatory frameworks, the enormous research capabilities it provides could provide Australian ag a welcome kick along. Meanwhile DuPont Co. and Dow Chemical Co. plan to merge in and then carve out a new crop-science unit.
Still, Monsanto’s rejection did not surprise analysts and investors.
Farmers have seen their incomes fall in the last few years amid declining commodity prices, and that’s spurred them to increasingly demand products tailored to their needs, according to Miner, one factor that’s spurring Bayer and Monsanto to consider a merger.
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The company would have a massive role in all segments of the crop protection and seeds business. He also voiced concern about whether the deal will be approved by regulators.
