Bayer acquires agricultural solutions company Monsato for $63bn

US-based agricultural biotechnology firm Monsato has been acquired by German life sciences company Bayer for a consideration of $63bn.

Bayer has agreed to pay $128 per share to Monsanto’x shareholders as part of the arrangement.

The German firm previously received a conditional approval from the US Department of Justice (DOJ) for the acquisition, which stated that the integration of Monsanto into Bayer could take place as soon as the divestments to BASF are completed.

Bayer board of management chairman Werner Baumann said: “Today is a great day for our customers, farmers around the world whom we will be able to help secure and improve their harvests even better; for our shareholders, because this transaction has the potential to create significant value; and for consumers and broader society, because we will be even better placed to help the world’s farmers grow more healthy and affordable food in a sustainable manner.

“As a leading innovation engine in agriculture, we offer employees around the world attractive jobs and development opportunities.

“Our sustainability targets are as important to us as our financial targets.

“We aim to live up to the heightened responsibility that a leadership position in agriculture entails and to deepen our dialogue with society.”

Monsanto shares will no longer be traded on the New York Stock Exchange (NYSE) following the completion of the acquisition.

JP Morgan has assisted Bayer with processing the purchase price payment for this transaction.

Monsanto outgoing chairman and CEO Hugh Grant said: “Today’s closing represents an important milestone toward the vision of creating a leading agricultural company, supporting growers in their efforts to be more productive and sustainable for the benefit of our planet and consumers.

“I am proud of the path we have paved as Monsanto and look forward to the combined company helping move modern agriculture forward.”

The integration process is expected to take approximately two months to complete.

Bayer board member Liam Condon is set to lead the combined Crop Science Division upon the finalisation of the integration, and Monsanto will continue to operate independently from Bayer until then.