In September 2016 Bayer and Monsanto announced that they signed a definitive merger agreement whereby Bayer will acquire Monsanto for US$128 per share in an all-cash transaction. By October 2017 Bayer agreed to divest significant portions of its seed and non-selective herbicide business to BASF in a US$7 billion all-cash deal, as part of its planned acquisition of Monsanto.
According to a recent article by The Wall Street Journal, the European Union conditionally approved the deal in March this year due to the sell-off of “Bayer’s soya bean and cottonseed businesses, as well as Bayer’s glufosinate weedkiller, which competes against Monsanto’s Roundup”. The United States Justice Department also recently allowed the mega merger after Bayer and Monsanto pledged to sell off additional assets that will also be acquired by BASF.
Following the report of the Justice Department’s decision by The Wall Street Journal, Monsanto’s shares rose more than 6% in recent trading. –Ursula Human, AgriOrbit