Bayer has made a proposal to buy out the Monsanto company. The German laboratory is advancing 55 billion euros. The American giant has not yet responded.
Is the merger of the century brewing? German pharmaceutical company Bayer has issued a takeover proposal. Its target: the agricultural giant Monsanto. To achieve its ends, the firm does not hesitate to untie the strings of its purse. The offer amounts to 55 billion euros.
With a takeover of Monsanto, Bayer – best known for its activities in human pharmacy – is trying to develop its other branch of activity, agricultural chemicals.
In a press release, the laboratory says it wants to consolidate its position “as a company specializing in life sciences”. Because in 2002, Bayer bought the agronomic branch of Aventis. Bayer CropScience AG then took on agrochemicals and genetically modified seeds.
A buyout of Monsanto therefore makes sense: since the end of the 20th century, the Saint-Louis group (Missouri, United States) has devoted itself to pesticides, seeds and GMOs. It is this orientation that has earned it one of the most hated companies in the world.
A troubled past
A bad reputation which does not seem to cool the new president of Bayer, Werner Baumann. “We think we can manage Monsanto’s reputation (…), he told theAFP. We know that we have to deal decisively with this point. “He also highlighted” the very, very good reputation “of his group.
That would be forgetting Bayer’s troubled past, whose image has been tarnished by the Gaucho – a pesticide accused of killing bees. The German giant was also involved in the tainted blood scandal in the 1980s.
The fact remains that with this takeover, the president of Bayer hopes to achieve substantial profits. “The expected synergy effects are expected to total approximately $ 1.5 billion after the 3e year ”, announces the group in a press release. Revenues are expected to increase by 5% in the first year following the buyout. Before that, Monsanto will have to accept the proposal, and the American and European competition authorities will have to confirm it.
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