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Bayer "betrothal" plus Monsanto will think about

2016-9-12 15:25:55

We believe that the latest offer is for the final attempt to negotiate the way transactions." Bank AG, the German Central Bank (DZ), said in a report to customers, the company's management team in September 14th, may require the approval of the board of supervisors approved hostile takeover.
In recent months, Germany Bayer pharmaceutical and chemical group (Bayer) has been in the planning for the acquisition of Monsanto (Monsanto), and in two after being refused, continue to raise the bid.
Local time on September 5th, Bayer said in a statement, will offer Monsanto improved from $125 to $127.5 per share, which means that the total value of the deal will reach nearly $66 billion. Bayer said that negotiations have been close to the final stage, but still can not guarantee that the final agreement will be reached.
If the acquisition is successful, will become Germany's largest ever overseas mergers and acquisitions, will also have the world's largest manufacturer of genetically modified seeds and agricultural chemicals, will occupy a leading position in the United States, Europe and asia.
Acquisition of resistance is not only the price
In early May 10, 2016, Bayer proposed price of $122 per share cash offer for Monsanto Monsanto, valued at $62 billion. This price is ultimately Monsanto's closing price higher than 20%, a record of the highest German enterprises overseas M & a bid.
But then, Monsanto to "offer insufficient to ensure the certainty of the transaction on the grounds, refused the offer for the first time in bayer.
At the beginning of July, Monsanto forced performance pressure, Bayer began to reconsider the offer. In July 14th, Bayer will offer up to Monsanto's $3 to $125 per share, the total price is up to $2 billion to $64 billion. And then, if the transaction due to antitrust reasons of final abortion, will pay $1 billion 500 million severance to monsanto.
But in mid July, Monsanto again rejected bayer. However, Monsanto said, would like to continue with Bayer, or other potential buyers to discuss the deal.
In September 5th, Bayer said in a statement, "further negotiations with Monsanto Bayer confirmed is a proposed transaction, if the main terms and conditions have not yet reached the expected agreement of Monsanto, Bayer is willing to pay $127.5 per share for the Mountain Meng this only in the negotiations, but based on the feasibility of the transaction the establishment of."
Bayer also said: "before the two sides did not sign the agreement, what can not be guaranteed."
According to "the Wall Street journal" reported that the CEO of Bayer (CEO) Bauman (Werner Baumann) or will be held on the 14 September, supervisors will report the work, then may further raise the bid request. Bayer company will hold investor conference in Cologne from September 19th to 20. Observers said the company executives hope to reach an agreement on the acquisition of Monsanto before.
However, there are reports that Monsanto is the expected value of $130 per share, which means that Bayer offer about $2 billion difference.
But the resistance and not only from monsanto. Some analysis believes that some of the shareholders will be opposed to the acquisition of the acquisition of the company, worried that the company will move away from the core drug business, or because of the business does not concentrate on low stock price.
In addition, Monsanto profit by agricultural economic weakness dragged down, the grain harvest increases, so prices fell, and the company has laid off 16%. Such a situation would also affect the willingness of Bayer shareholders to invest.
The acquisition has also raised concerns about the monopoly of the agricultural sector. Some industry insiders said that if the acquisition is completed, the market competition in the field may be weakened, the choice of related products may be reduced, while the price of the product may improve.
Although Bayer said that if the acquisition is completed, consumers will be able to have more seeds and pesticide products to choose, to help farmers increase the harvest. But some analysts pointed out that after the merger the new company will occupy the global pesticide market in 28%, and in the U.S. corn and soybean seed market has a great proportion of the bargaining power will be greatly enhanced.
In fact, Monsanto has encountered many struggles and collective action in the world, has been accused of using genetically modified seeds and herbicides caused by smallholder farmers and agricultural control, squeezed, plus GM products have been unable to convince people, once the outbreak of the global campaign against Monsanto series.
Facing the new "giant" may occur in the future, whether the United States and the European Union will start antitrust investigation, will be more strict policy of genetically modified crops, and how environmental groups will be resisted, is Bayer and Monsanto must face the problem.
Agricultural giant wrestling hot
Despite the obstacles, but always passionately devoted to Monsanto bayer.
Some analysis pointed out that the core areas of Bayer focused on pharmaceutical care and agricultural areas, compared to seed business, Bayer's plant protection technology is more prominent. If the successful acquisition of the world's largest Bayer seed company Monsanto, will undoubtedly be greatly strengthen the business of Bayer seeds. Bayer and Monsanto will soon the world's largest seed and agricultural chemical manufacturers.
In addition, genetically modified business is also a hot topic of concern. It is reported that about 80% of the United States and more than 90% of the corn soybean were planted with seeds Monsanto patent. In addition, Monsanto has a total of approximately 1700 patents. Monsanto's 2015 sales of approximately $15 billion, of which the seed and genome sector sales reached about US $10 billion 200 million.
In fact, the proposed acquisition is not a case of Monsanto bayer. In recent years, with commodity prices of agricultural products provider performance pressure between the global agricultural giant wrestling has been heating up, they maintain their competitiveness become integration hobson.
At the end of last year, DuPont and Dow suddenly shocked, "flash marriage" conversion circle; in February this year, to Chinese Syngenta chemical, the huge potential of the Chinese embrace the market; in March this year, rumors of German BASF intention from the Dow away at DuPont, DuPont seed business.
As in the case of the acquisition of the subject, Monsanto actually has a heart when buyers.
Last year, Monsanto proposes to the highest price of $47 billion for the Swiss agricultural giant Syngenta Syngenta, but was refused. Later, by Chinese chemical acquisition of syngenta.
This year, in the face of Bayer's mad pursuit, Monsanto still did not forget to consider alternatives".
According to foreign media reports, in July of this year, Monsanto rejected second acquisition program after BASF and Bayer, re start the acquisition negotiations. Monsanto tend to issue of new shares, BASF's acquisition of agricultural business, but the discussion is still in the initial stage, has not finalized.
According to reports, offer BASF shareholders on Monsanto's positive response.
At the same time, the vice president of BASF Martin statement at a news conference, Bayer plans to acquire BASF's business plan for Monsanto will not have an impact, "we will not be changes in the market led by the nose".
As the world's largest manufacturer of industrial chemicals, the market value of $73 billion BASF agricultural sector is short board. Bloomberg summary of fiscal revenue in 2015 showed that BASF's revenue in the field of agriculture was significantly behind the other giants.

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