GERMAN pharmaceutical giant Bayer has purchased the United States agriculture giant Monsanto for $63 billion after securing approval for the deal from US and European regulators.
Under conditions set out by the regulators, Bayer can only begin integrating Monsanto once it has sold off parts of its agrochemical and crop-seeds business to another German chemical giant, BASF. The company expects the sale to take around two months to complete.
Bayer becomes the sole shareholder of Monsanto. The move will mean the end of the Monsanto company name. The acquired products will retain their brand names and become part of the Bayer portfolio.
Bayer Board of Management chairman, Werner Baumann, said: “Today is a great day: for our customers – farmers around the world whom we will be able to help secure and improve their harvests even better; for our shareholders, because this transaction has the potential to create significant value; and for consumers and broader society, because we will be even better placed to help the world’s farmers grow more healthy and affordable food in a sustainable manner.”
Monsanto’s outgoing chairman and CEO, Hugh Grant, said: “Today’s closing represents an important milestone toward the vision of creating a leading agricultural company, supporting growers in their efforts to be more productive and sustainable for the benefit of our planet and consumers. I am proud of the path we have paved as Monsanto and look forward to the combined company helping move modern agriculture forward.”
Bayer Board of Management member, Liam Condon, will lead the combined Crop Science Division when the integration commences. Until that time, Monsanto will operate independently from Bayer.