MON Monsanto Company (delisted)

   By Donato Paolo Mancini 
 

Bayer AG (BAYN.XE) said Monday that it expects to close the acquisition of Monsanto Co. (MON) on June 7.

The acquisition, which would be the largest in Bayer's history, would double the size of its agriculture business and is anticipated to generate significant value, the company said.

The announcement comes after a two-year saga that began in May 2016, when Bayer announced its intention to acquire the U.S. seed maker. The acquisition is valued at $63 billion, Bayer said.

The Frankfurter Allgemeine Zeitung newspaper on Sunday reported that the deal would close on June 7.

To meet financial, regulatory and antitrust requirements, Bayer has sold off a number of its divisions and arranged several debt and equity transactions, the latest being a 6 billion-euro ($6.99 billion) rights issue announced Sunday.

According to conditions set out by the U.S. Department of Justice, the integration of Monsanto into Bayer can be effected as soon as the divestments from BASF SE (BAS.XE) are completed.

The German company expects the acquisition to contribute double-digit percentage point growth to core earnings per share starting in 2021.

Bayer will remain as the company name, while Monsanto won't. Acquired products will retain brand names and become part of Bayer's portfolio.

Write to Donato Paolo Mancini at donatopaolo.mancini@dowjones.com

(END) Dow Jones Newswires

June 04, 2018 02:39 ET (06:39 GMT)

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