Bayer raised the stakes in its offer to purchase Monsanto, proposing a potential transaction consideration of $127.50 per share. Both companies have confirmed that negotiations have advanced, and the German life science company is now willing to offer more than $65 billion to acquire the globe’s largest seed company.
Monsanto plans to evaluate the proposal, as well as proposals from other parties and other strategic alternatives in order for the Board of Directors to determine if a transaction in the best interests of its shareowners.
This is the not the first dance for the two agricultural giants. In July, Bayer raised its earlier offer of $122 per share to $125. Monsanto turned down the deal, but said it was open to further talks with the company, as well as other parties.
The current proposed transaction would be subject to regulatory approval and other customary closing conditions. The key conditions of a definitive transaction agreement must be approved by the Supervisory Board of Bayer AG.