Bayer pounces on Monsanto deal with $56bn sweetner offer

Bayer’s takeover bid with a $56bn offer to create World’s  biggest seed and crop spray supplier met with some resistance  with the shareholders of Monsanto who wanted a further improved offer.Bayer Aktiengesellschaft or its subsidiaries (“Bayer AG”), to purchase all of the outstanding shares of common stock, par value $0.01 per share, of Monsanto Company, a Delaware corporation (“Monsanto”).

Last Monday Bayer announced that it was in advanced talks with the US agrochemical firm Monsanto, and is willing to boost its offer to $127.50 a share – a 2 per cent increase  on earlier bid of $125.

Heavy consolidation in the global agricultural sector, driven by low commodities pride and squeezed farm incomes.

This could be the largest  overseas takeover by a German company eclipsing the  Car-maker Daimler- Benz’s acquisition of Chrysler for $38.6bn in 1998.

Dow Chemical and Du Point announced a $130bn merger last year. ChemChina has designs to buy Switzerland’s Syngenta for $44bn and Potash Corp, the world’s largest potash supplier is in talks with rival Agrium to create $30bn fertiliser group.