Germany’s Bayer will acquire United States-based biotechnology giant Monsanto Co in a deal worth $66 billion (approximately Rs 4.41 lakh crore), Reuters reported on Wednesday. Once completed, the acquisition will be the largest ever by a German firm, the report said.
The deal will see Bayer buy 442 million shares of Monsanto at $128 per share (approximately Rs 8,561.28) and also take on the group’s net debt of $9.3 billion (approximately Rs 62.2 thousand crore) the report. The deal, which also includes a fee of $2 billion in case the acquisition does not get regulatory approval, is expected to close by the end of 2017. Shares of Bayer were trading 3% higher on the Börse Frankfurt after the news broke, the report added.
The German firm’s acquisition deal could attract attention from anti-competition bodies as the new entity will form the world’s biggest seeds and pesticides Company, BBC reported. However, farming groups have raised concerns over such mergers and tie-ups, saying that they lead to fewer choices and higher prices.