German conglomerate Bayer closed its $63 billion merger with St. Louis-based agribusiness giant Monsanto. The closing sets the stage for the 117-year-old agribusiness brand name “Monsanto” to be dropped by Bayer.
Germany’s Bayer AG, a specialist in pharmaceuticals and life sciences, closed its $63 billion acquisition of American agro-chemistry giant Monsanto Co., emerging from an arduous two-year antitrust review as the biggest seed and agricultural chemicals maker in the world. The German drug maker had received all required approvals from regulatory authorities, it said in a statement on 7th June. “Bayer will remain the company name. Monsanto will no longer be a company name. The acquired products will retain their brand names and become part of the Bayer portfolio,” it said. Bayer secured initial bridge financing of $57 billion.
In order to please regulators, Bayer had to sell its seed and herbicide department to BASF, and Monsanto agreed to retire its brand name. “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,” said Hugh Grant, outgoing chairman and CEO of Monsanto.
The St. Louis region will become Bayer’s North American headquarters and retain its presence as a leading hub of biotech research. Bayer’s crop science researchers, for instance, will join Monsanto’s research campus in Chesterfield after moving from their current home in North Carolina.
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