The German group of the pharmacy and agrochemicals, Bayer announced on Monday 4 June that he was going to remove the mark Monsanto after the acquisition of the american giant of GMOS and pesticides. The group of Leverkusen has further reported that he intended to complete on June 7 its acquisition of Monsanto, valued close to $ 63 billion, adding that all the necessary approvals of the regulators had been obtained.
“Bayer will continue to be the name of the company. Monsanto as a company name will not be maintained”, says a press release of Bayer published on Monday. The brands of the products sold by Monsanto will, however, remain.
No justification is given by Bayer for the deletion of the name Monsanto, while since the announcement of the proposed marriage with the american mid-2016, the defenders of the environment have put pressure on the authorities by organizing protests and demonstrations across the world.
“We’re going to listen to those who criticize us and work together”, but “the progress should not be halted due to a strengthening of the fronts-ideological,” said Werner Baumann, CEO of Bayer, in a statement.
Valued close to $ 63 billion
The acquisition of Monsanto, launched in September 2016, is valued close to $ 63 billion (€53.8 billion), based on the value of the debt of the target in February 2018.
The competition authorities in the United States and Europe have already given their green light to the operation while imposing significant disposals of businesses at rival German BASF, for a value of nearly 9 billion dollars (7.7 billion euros)
All agrochemicals of Bayer will totalize a turnover of almost 20 billion euros, taking into account the divestment of BASF, which weigh about 2 billion euros of sales.
Bayer announced on Sunday evening proceed to a capital increase of 6 billion euros to help fund its purchase through the issuance of approximately 75 million new shares at a price of 81 euros per unit, the subscription to take place between June 6 and June 19. Bonds of up to eur 20 billion will also complete the financial package.
The reconciliation between Bayer and Monsanto had been greeted at the outset with reserve by the competition authorities, due to the dominant position of the new entity in the field of agricultural products.