Bayer will provide less synergies with Monsanto after disposals

© Reuters. BAYER WILL PROVIDE LESS SYNERGIES WITH MONSANTO AFTER DISPOSALS

FRANKFURT (Reuters) – The potential synergies are realized by Bayer (DE:BAYGN) with the acquisition of Monsanto (NYSE:MY) will be less than $ 1.5 billion due to disposals of assets intended to appease the competition authorities, said the financial manager of the German giant of the agrochemical industry.

The savings of $ 1.5 billion in three years as an objective “pro forma,” said Johannes Dietsch to the German newspaper Börsen-Zeitung.

“The basis for synergies is now lower. We will provide an update on the topic of synergies,” he said.

To get the green light from the competition authorities for the takeover of Monsanto, Bayer has agreed in particular to assign the activities in the seed of his compatriot BASF (DE:BASFN).

Bayer continues to predict an increase of capital, said Johannes Dietsch, while refusing to specify the magnitude.

This call in the market will coincide roughly with the completion of the redemption of Monsanto and will not occur prior to may 25, he said.

Immediately after this acquisition, Bayer will seek to reduce its debt level, continued to Johannes Dietsch.

(Edward Taylor; Bertrand Boucey for the French service)