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Bayer signs deal to acquire Monsanto for over Rs 4.4 lakh crore

German drugs and crop chemicals company Bayer today said that it has signed a deal to acquire seed and weed-killer company Monsanto for $66 billion (over Rs 4.4 lakh crore) in cash.

India TV Business Desk, Frankfurt [ Published on: September 14, 2016 18:21 IST ]
Bayer signs deal to acquire Monsanto
Bayer signs deal to acquire Monsanto

German drugs and crop chemicals company Bayer today said that it has signed a deal to acquire seed and weed-killer company Monsanto for $66 billion (over Rs 4.4 lakh crore) in cash.

Bayer says it is paying Monsanto shareholders $128 per share (over Rs 8500), which represents a 44 percent premium over Monsanto's closing price on May 9, the day before a proposed deal was announced.

The deal is subject to approval by Monsanto shareholders and anti-trust regulators. The deal is expected to close by the end of 2017, reports said. 

Bayer said that the transaction brings together two different but complementary companies. Bayer makes a wide range of crop protection chemicals, while Monsanto is known for its seeds business.

The deal will create a company commanding more than a quarter of the combined world market for seeds and pesticides in the fast-consolidating farm supplies industry.

Leverkusen-based Bayer said the merged companies' agriculture business would have its seeds business and North American business headquarters in St. Louis, Missouri, where Monsanto is currently based.

With AP Inputs

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