Multi billion dollar deal to create mega agrochemical company moves closer
The shareholders of Monsanto have approved a $66 billion takeover by Bayer AG.
Under the terms of the merger agreement, Monsanto shareowners will receive $128 per share in cash at the closing of the merger.
The deal still requires regulatory approval which is expected to close in late 2017.
It has been reported that if the deal closes, it will create a company commanding more than a quarter of the combined world market for seeds and pesticides.
The acquisition came after a string of large mergers that have roiled the agribusiness sector in the last year or so, including ChemChina's purchase of Swiss chemicals company Syngenta AG (SYNN.S) and a merger of Dow Chemical and DuPont.
Hugh Grant, Monsanto Chairman and Chief Executive Officer said he is pleased the company received such strong support from our shareowners.
“This is an important milestone as we work to combine our two complementary companies and deliver on our shared vision for the future of agriculture.
Meanwhile, Werner Baumann CEO of Bayer AG said the acquisition of Monsanto is driven by its strong belief that this combination can help address the growing challenges facing farmers and the overall agriculture industry today and in the future.