Bayer plans closing of Monsanto acquisition on June 7

In a statement, Bayer said it is "fully aware" of the heightened responsibility that a leadership position in agriculture entails
In a statement, Bayer said it is "fully aware" of the heightened responsibility that a leadership position in agriculture entails

German chemical giant Bayer plans to complete the acquisition of Monsanto on Thursday following the receipt of all required approvals from regulatory authorities.

Bayer will become the sole shareholder of Monsanto on Thursday June 7. According to the conditional approval from the United States Department of Justice, the integration of Monsanto into Bayer can take place as soon as the divestments to BASF have been completed. This is expected to be in approximately two months.

Bayer first announced its intention to acquire Monsanto in May 2016 and signed an agreement with the US company for $128 dollars per share in September 2016.

The acquisition is anticipated to generate significant value. Bayer expects a positive contribution to core earnings per share starting in 2019. From 2021 onward, that contribution is expected to be double-digit percentage.

In 2017, both companies together employed approximately 115,000 people.

“The acquisition of Monsanto is a strategic milestone in strengthening our portfolio of leading businesses in health and nutrition,” said Werner Baumann, Chairman of the Board of Management of Bayer AG.

“We will double the size of our agriculture business and create a leading innovation engine in agriculture, positioning us to better serve our customers and unlock the long-term growth potential in the sector.”

Bayer will remain the company name, and Monsanto will no longer be a company name. The acquired products will retain their brand names and become part of the Bayer portfolio.

In a statement, Bayer said it is "fully aware" of the heightened responsibility that a leadership position in agriculture entails. It confirmed that the company will strengthen its commitment in the area of sustainability.