While Monsanto India focuses on Bt Cotton, maize and agri products, Bayer CropScience sells seeds, crop protection and non-agricultural pest control products.
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Monsanto Co.is poised to reject a $62 billion takeover offer from Germany’s Bayer AG as too low, according to people with knowledge of the matter, potentially derailing a proposed deal to create the world’s biggest supplier of farm chemicals and seeds. It said in a statement that the acquisition “would be a compelling opportunity to create a global agriculture leader, while reinforcing Bayer as a life science company with a deepened position in a long-term growth industry”.
Monsanto and Bayer representatives did not immediately respond to requests for comment. However, the St. Louis, Missouri-based company believes its shareholders deserve a better offer.
It expects annual earnings contributions from synergies of around $1.5 billion after three years, plus additional future benefits from integrated offerings.
The offer marks a reversal of roles for Monsanto. Monsanto is still open to exploring a deal because it sees the strategic rationale of a combination, they said. For example, ChemChina is close to buying Switzerland’s Syngenta for $43 billion.
“What complicates this is the whole regulatory backdrop is potentially problematic”, said Zoldy. “If regulators determine a need to divest of specific businesses, we would comply if necessary – but it is premature for us to speculate”.
In the biggest takeover ever attempted by a German company, Bayer said it made an offer for the American giant at 122 per share in cash, or a total of 62 billion (55 billion euros). Some people don’t like Monsanto’s business in selling genetically modified crop seeds. Some countries have blocked such seeds, and the business had been a target of environmental activists.
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Last year, following the unsuccessful bid for Syngenta, Monsanto embarked on a huge restructuring programme, saying it would axe 3,600 jobs – or 16 percent of its workforce – by 2018, closing sites and writing down assets.
