German company Bayer to take over Monsanto for USD 62.5 billion

The German chemical-pharmaceutical company Bayer won U.S. approval for its planned takeover of Monsanto, clearing a major hurdle for the USD 62.5 billion deal.

– The asset sales agreed to by Bayer are the largest ever divestiture ever required by the United States – said Makan Delrahim, who heads the U.S. Justice Department’s (DoJ) Antitrust Division, as reported by Reuters.

As part of the agreement with the U.S. authorities, Bayer agreed to sell about USD 9 billion in assets.

– Receipt of the DoJ’s approval brings us close to our goal of creating a leading company in agriculture – Bayer CEO Werner Baumann said in a statement.

Shares in Bayer jumped to the top of Germany's DAX index following the news, trading up 2.8% at 101.6 euros.

Analysts say that Bayer might close the Monsanto deal by the end of June.

It has already secured the go-ahead from key jurisdictions, including the European Union, Brazil and Russia. Apart from the United States, it still needs clearance in Canada and Mexico.

Bayer last week said synergies from folding Monsanto into its organization would be about USD 300 million below its previous target because it will have to sell more businesses than initially expected.

Under agreements with European and other antitrust enforcers, Bayer agreed to sell assets with revenues of EUR 2.2 billion euros to rival BASF for EUR 7.6 billion.

BAYER AG Leverkuzen

Monsanto Company St. Louis

Bayer

US Justice Department

DoJ

Makan Delrahim

Werner Baumann

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BASF

takeover of Monsanto by Bayer