Bayer Offers $65B In Third Attempt To Buy Monsanto

Image courtesy of Jeanette E. Spaghetti

Perhaps the third time is the charm for a deal between Monsanto and Bayer, as the latter company has once again upped its bid for the Missouri seed and pesticide giant, offering nearly $65 billion to create the world’s largest seed company. 

Monsanto confirmed the new offer from German-based pharmaceutical and crop chemicals manufacturer Bayer — which works out to be about $127.50 per share — on Monday saying that it would take the deal under consideration.

“Monsanto is continuing these conversations [with Bayer] as it evaluates this proposal, as well as proposals from other parties and other strategic alternatives,” the company said in a statement.

The company cautioned that there is no assurance that any “transaction will be entered into or consummated, or on what terms.”

Still, Reuters, citing people familiar with the matter, reports that the two companies are “gradually nearing consensus” on the deal.

Bloomberg reports that Bayer’s latest offer is part was made “in connection with a negotiated transaction,” perhaps indicating that a deal is not far off. However, analysts say it might not be the final bid, suggesting that Bayer could sweeten the deal to $130 per share in the future.

The offer represents a 2% increase over Bayer’s previous bid to of $125 per share shot down by Monsanto in July.

It’s also about 4.5% higher than Bayer’s initial offer in May of $122 per share, which Monsanto deemed “financially inadequate.”

Bayer sweetens Monsanto bid as talks enter final stretch [Reuters]
The Hunt for Monsanto’s Magic Beans [Bloomberg]