Bayer (BAYRY) Raises Offer to Purchase Monsanto Yet Again
Germany-based Bayer AG BAYRY confirmed that its negotiations related to a proposed acquisition of Monsanto Company MON have advanced. The transaction is aimed to create a global leader in agriculture.
Bayer announced that it would now offer $127.50 per Monsanto share under a negotiated deal, up from its previous offer of $125. The deal is subject to regulatory approval and other customary closing conditions. However, no key terms and conditions have yet been agreed upon so far.
The company also stated that there is still no guarantee that the parties will enter into an agreement at all.
BAYER A G -ADR Price
BAYER A G -ADR Price | BAYER A G -ADR Quote
Note that this July, Bayer had upped its all-cash offer to Monsanto shareholders from $122 per share to $125 per share. Bayer’s increased offer was to address Monsanto’s questions regarding financing and regulatory matters.
We remind investors that in May 2016, Monsanto had rejected the initial offer of $122 per share in an aggregate all-cash deal worth $62 billion, citing that it would significantly undervalue the company. However, the company was open to more talks.
MONSANTO CO-NEW Price
MONSANTO CO-NEW Price | MONSANTO CO-NEW Quote
The deal is expected to bring together leading platforms like Seeds & Traits, Crop Protection, Biologics and Digital Farming. The combined business will benefit from Monsanto’s Seeds & Traits and Bayer’s Crop Protection products across a comprehensive range of indications and crops. The transaction will also create attractive opportunities for the employees of both the companies.
We expect investor focus to remain on updates from the Bayer/Monsanto transaction, going ahead.
Bayer currently carries a Zacks Rank #2 (Buy), while Monsanto is a Zacks Rank #3 (Hold) stock. A couple of well-placed stocks in the health care sector are Anika Therapeutics, Inc. ANIK and ANI Pharmaceuticals, Inc. ANIP. Both the stocks sport a Zacks Rank #1 (Strong Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BAYER A G -ADR (BAYRY): Free Stock Analysis Report
ANIKA THERAPEUT (ANIK): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
ANI PHARMACEUT (ANIP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
