(St. Louis Public Radio) – St. Louis-based Monsanto has finally agreed to a takeover offer from the German company Bayer. The deal is valued at $66 billion and would create the world’s largest seeds and pesticides company. The announcement ends months of back and forth between the companies, which started when Bayer announced its intentions in May.
St. Louis will have an important role in the combined company. It will be the headquarters for the seeds and traits division and the North American commercial operations.
The deal still needs regulatory and shareholder approval. Bayer will pay Monsanto $2 billion if the takeover is not approved by antitrust regulators.
The companies say the acquisition is expected to close by the end of 2017.
The Bayer-Monsanto tie-up follows a merger trend in the agricultural sector.
DuPont and Dow Chemical are working through the merger process that is expected to result in a company with a large agricultural presence.
Syngenta is being taken over by China National Chemical Corp.
The Swiss company had been a takeover target of Monsanto, but the companies could not come to an agreement.
Republished with permission of St. Louis Public Radio: http://news.stlpublicradio.org/post/bayer-acquire-monsanto-66-billion-deal
