Bayer's legal advisers are Sullivan & Cromwell and Allen & Overy.However, competition authorities are likely to scrutinize the tie-up closely, and some of Bayer's own shareholders have been highly critical of a takeover plan which they say risks overpaying and neglecting the company's pharmaceutical business.Data is a real-time snapshot *Data is delayed at least 15 minutes.
Disclaimer. Now it's official: Monsanto is going to be swallowed up by a rival in the biggest takeover announced so far this year. All rights reserved. Bayer expects the deal to close by the end of 2017.Bayer and Monsanto were in talks to sound out ways to combine their businesses as early as March, which culminated in Bayer coming out with an initial $122 per-share takeover proposal in May.Morgan Stanley and Ducera Partners are acting as financial advisers to Monsanto, with Wachtell, Lipton, Rosen & Katz its legal adviser.The German company is aiming to create a one-stop shop for seeds, crop chemicals and computer-aided services to farmers.Sign up for free newsletters and get more CNBC delivered to your inboxIt plans to raise $19 billion to help fund the deal by issuing convertible bonds and new shares to its existing shareholders, and said banks had also committed to providing $57 billion of bridge financing.Bayer said it was offering a 44 percent premium to Monsanto's share price on May 9, the day before it made its first written proposal.That was also the idea behind Monsanto's swoop on Syngenta last year, which the Swiss company fended off, only to agree later to a takeover by China's state-owned ChemChina.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. Bank of America/Merrill Lynch and Credit Suisse are acting as lead financial advisers to Bayer, with Rothschild as an additional adviser.
All times are ET. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2019 and/or its affiliates.Monsanto shares in the U.S. were flat in premarket trading at around $106. To clinch a deal, Germany's Bayer pumped even more money into its …
The transaction includes a break-fee of $2 billion that Bayer will pay to Monsanto should it fail to get regulatory clearance. Global Business and Financial News, Stock Quotes, and Market Data and Analysis."We believe political pushback to this deal, ranging from farmer dissatisfaction with all their suppliers consolidating in the face of low farm net incomes to dissatisfaction with Monsanto leaving the United States, could provide significant delays and complications," they wrote in a research note.Elsewhere in the industry, U.S. chemicals giants Dow Chemical and DuPont plan to merge and later spin off their respective seeds and crop chemicals operations into a major agribusiness.The details confirm what a source close to the matter told Reuters earlier.Bayer said it expected the deal to boost its core earnings per share in the first full year following completion, and by a double-digit percentage in the third year.Bayer's move to combine its crop chemicals business, the world's second largest after Syngenta, with Monsanto's industry leading seeds business, is the latest in a series of major tie-ups in the agrochemicals sector.Got a confidential news tip? Monsanto had in the past tried unsuccessfully to buy Syngenta.We're no longer maintaining this page.The deal is the latest mega-merger aimed at reshaping the agribusiness and chemical sectors.Most stock quote data provided by BATS. We want to hear from you.Bernstein Research analysts said on Tuesday they saw only a 50 percent chance of the deal winning regulatory clearance, although they cited a survey among investors that put the likelihood at 70 percent on averageThe transaction includes a break-fee of $2 billion that Bayer will pay to Monsanto should it fail to get regulatory clearance. Factset: FactSet Research Systems Inc.2019. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. Bayer expects the deal to close by the end of 2017. Bayer AG, after more than a year of talks, agreed to pay as much as $10.9 billion to settle close to 100,000 U.S. lawsuits claiming that its widely-used weedkiller Roundup caused cancer, resolving litigation that has pummeled the company's share price.
That's way below the offer price, suggesting investors doubt the deal will go through.To clinch a deal, Germany's Bayer pumped even more money into its bid for the U.S. seed giant, valuing it at $66 billion, including debt.Bayer has said combining the companies would generate synergies of $1.5 billion over three years.Bayer, which is strongest in Asia and Europe, stands to gain from Monsanto's expertise in agriculture and seeds.