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Bayer closes in on Monsanto

Bayer has confirmed that it is in advanced negotiations with Monsanto concerning a proposed transaction which would see Monsanto valued at some $65 billion, with Bayer prepared to offer $127.50 per Monsanto share.

Bayer has confirmed that it is in advanced negotiations with Monsanto concerning a proposed transaction which would see Monsanto valued at some $65 billion, with Bayer prepared to offer $127.50 per Monsanto share. Commentators say they believe a deal could be done within a week or two if Bayer – who offered $122/share in July, subsequently revised to $125/share - offers $130/share. Monsanto has reportedly opened its books to Bayer to allow the latter to conduct due diligence. Bayer points out that there can be no assurance that the parties will enter into an agreement, and that any transaction would be subject to regulatory approval and other customary closing conditions.