Bayer defies critics with $62 billion Monsanto offer

Record ID: 102353

  • Title: Bayer defies critics with $62 billion Monsanto offer
  • Date: 23rd May 2016
  • Summary: LEVERKUSEN, GERMANY (MAY 23, 2016) (REUTERS) EXTERIOR OF BAYER AG HEADQUARTERS ENTRANCE OF HEADQUARTERS VARIOUS OF BAYER FLAGS IN FRONT OF BUILDING JOURNALISTS WAITING IN FOYER BAYER AG CHIEF EXECUTIVE, WERNER BAUMANN, ARRIVING FOR STATEMENT BAYER LOGO (SOUNDBITE) (German) BAYER AG CHIEF EXECUTIVE, WERNER BAUMANN, SAYING: "Today is a special day for Bayer and a big step for our agricultural business. For more than 150 years Bayer stands for innovation, science and responsibility for the people. The planned acquisition of Monsanto fits into this tradition in a very particular way, because only with innovation will modern agriculture succeed in feeding three billion more people in 2050. It's about six times more people than living in Europe today and this is one of the great challenges of our time." BAYER LOGO ON WINDOW (SOUNDBITE) (German) BAYER AG CHIEF EXECUTIVE, WERNER BAUMANN, SAYING: "We are convinced that the planned buy of Monsanto will mainly contribute to the solution of these challenges. Together we can make sure that the worldwide food production can be raised in spite of even more difficult cultivation and environmental conditions. At the same time at Bayer we are going to do this with the highest responsibility, as usual. We are going to use our innovative capacity in order to help farmers increase their harvest while preserving the environment." BANNER SHOWING ADVERTISEMENT WITH CHINESE RICE FARMERS (SOUNDBITE) (German) BAYER AG CHIEF EXECUTIVE, WERNER BAUMANN, SAYING: "Monsanto fits into and complements our business perfectly. Our business owns a leading position in plant protection, Monsanto is the leading seeds company of the world. Together we are able to offer better and custom-made solutions to our customers. This applies also especially to the upcoming digitalisation of agriculture. The planned acquisition is strategically convincing and reasonable. We at Bayer are deeply convinced that this step is good for our company and that our shareholders, our customers and also the employees of both companies will profit from it to the same extend." NEWS TICKER (SOUNDBITE) (German) BAYER AG CHIEF EXECUTIVE, WERNER BAUMANN, SAYING: "We are going to lead our business with the highest standards, as you are used to from us, and then we are going to further develop this business and openly and transparently discuss with critical stakeholders." BAUMANN LEAVING
  • Embargoed: 7th June 2016 13:06
  • Keywords: Bayer AG Monsanto Werner Baumann
  • Location: LEVERKUSEN, GERMANY
  • City: LEVERKUSEN, GERMANY
  • Country: Germany
  • Topics: Company News Markets,Economic Events
  • Reuters ID: LVA0014J13NV1
  • Aspect Ratio: 16:9
  • Story Text: German drugs and crop chemicals group Bayer has offered to buy United States seeds company Monsanto for $62 billion in cash, defying criticism from some of its own shareholders in a bid to grab the top spot in a fast-consolidating farm supplies industry.
    The unsolicited proposal, which includes debt, would be the largest foreign takeover by a German company if accepted.
    The move, which would eclipse a planned combination of Dow Chemical and DuPont's agriculture units, comes just three weeks after Werner Baumann took over as Bayer CEO, and was condemned by a major shareholder as "arrogant empire-building" when news of the proposal emerged last week.
    Giving details for the first time, Bayer said on Monday (May 23) it would offer $122 per share, a 37 percent premium to Monsanto's stock price before rumours of a bid surfaced.
    "Today is a special day for Bayer and a big step for our agricultural business. For more than 150 years Bayer stands for innovation, science and responsibility for the people. The planned acquisition of Monsanto fits into this tradition in a very particular way, because only with innovation will modern agriculture succeed in feeding three billion more people in 2050. It's about six times more people than living in Europe today and this is one of the great challenges of our time," Baumann told reporters during a statement at the company's headquarters in Leverkusen.
    "We are convinced that the planned buy of Monsanto will mainly contribute to the solution of these challenges. Together we can make sure that the worldwide food production can be raised in spite of even more difficult cultivation and environmental conditions. At the same time at Bayer we are going to do this with the highest responsibility, as usual. We are going to use our innovative capacity in order to help farmers increase their harvest while preserving the environment," Baumann added.
    Monsanto, which said last week it had a received an approach from Bayer but gave no details, has yet to comment on the offer. The U.S. company's shares jumped 9.5 percent to $111.17 in pre-market trading.
    With German rival BASF also looking into a possible tie-up with Monsanto, Bayer has moved to avoid being left behind.
    Baumann rejected suggestions from some investors that Bayer should instead try to forge a joint venture with Monsanto, saying this would have tax disadvantages.
    "We at Bayer are deeply convinced that this step is good for our company and that our shareholders, our customers and also the employees of both companies will profit from it to the same extend," Baumann said.
    Shares in Bayer, which had already fallen 14 percent since rumours of a bid emerged last week, dropped as much as 3.6 percent on Monday to a new 2-1/2 year low of 86.3 euros.
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