German chemicals and pharma giant Bayer AG (BAYRY) said Wednesday it had won over Monsanto’s (MON) management with a $128 per share offer in cash, worth about $66 billion including debt, to take over the global seed market leader.
The companies have agreed on an antitrust break fee of $2 billion and the deal is expected to be closed by the end of 2017, the German group said in a statement.
Bayer intends to finance the transaction with a combination of debt and equity. The equity component of approximately $19 billion is expected to be raised through mandatory convertible bonds and a rights issue, it added.
“Today’s announcement is a testament to everything we’ve achieved and the value that we have created for our stakeholders,” Monsanto chairman and CEO Hugh Grant said in the statement. “We believe that this combination with Bayer represents the most compelling value for our shareowners, with the most certainty through the all-cash consideration.”
The final price of $128 a share is just under 5% higher than Bayer’s original offer back in May, and a 44% premium to where Monsanto’s shares were trading before Bayer’s first offer.
