US Monsanto Confirms Acquisition by Germany's Bayer, Says Deal Worth $66Bln

© AP Photo / James A. FinleyA sign at the Monsanto Co. headquarters located in St. Louis, Missouri.
A sign at the Monsanto Co. headquarters located in St. Louis, Missouri. - Sputnik International
US agricultural company Monsanto on Wednesday confirmed in a statement its acquisition by German pharmaceutics giant Bayer, saying the deal is worth $66 billion.

MOSCOW (Sputnik) — Earlier in the day, media reported that the German company and Monsanto reached the deal worth about $65 billion to buy the US-based corporation.

"USD 128 per share in all-cash transaction, represents 44 percent premium to Monsanto shareholders and an aggregate value of USD 66 billion… Bayer intends to finance the transaction with a combination of debt and equity. The equity component of approximately USD 19 billion is expected to be raised through an issuance of mandatory convertible bonds and through a rights issue with subscription rights. Bridge financing for USD 57 billion is committed by BofA Merrill Lynch, Credit Suisse, Goldman Sachs, HSBC and JP Morgan," the statement said.

A building is viewed on the campus of Monsanto Headquarters on May 23, 2016 in St. Louis, Missouri - Sputnik International
Monsanto Rejects Bayer Acquisition Proposal as Financially Inadequate
The statement added that the deal had been unanimously approved by Monsanto’s Board of Directors, Bayer’s Board of Management and Bayer’s Supervisory Board.

In May, Bayer offered $62 billion to buy Monsanto, saying the pesticide and fertilizer producer was a perfect match for its agricultural business. The US company has rejected that proposal, as well as further bids of Bayer. Earlier in September, the German company announced that it had again increased its bid.

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