Monsanto shares surge as US ‘approve’ Bayer takeover deal
Shares in Monsanto surged by over 6% yesterday (Monday, April 9) following reports that the Bayer takeover deal had received US approval.
As reported by The Wall Street Journal, it is believed that Bayer’s proposed acquisition of Monsanto – the company which manufactures the pesticide Roundup – received “an agreement in principle” with the US Department of Justice which would allow the deal to go ahead.
It is understood that the companies would have to “sell off additional assets” to secure approval.
The proposed takeover deal is expected to reach a value in excess of $60 billion.
Meanwhile, Bayer’s proposed acquisition of Monsanto was conditionally approved by the European Commission last month.
Commenting on that development, Bayer CEO Werner Baumann said: “Receipt of the European Commission’s approval is a major success and a significant milestone.
Together with Monsanto, we want to help farmers across the world grow more nutritious food in a more sustainable way that benefits both consumers and the environment.
The transaction remains subject to customary closing conditions, including receipt of required regulatory approvals.
The German pharmaceutical giant previously stated that both it and Monsanto were working closely with various authorities – including the Department of Justice in the US – with the goal of closing the transaction in the second quarter of 2018.