US Approved Bayer’s Acquisition of Monsanto (NYSE:MON)

US Approved Bayer’s Acquisition of Monsanto (NYSE:MON)

US Approved Bayer’s Acquisition of Monsanto (NYSE:MON)


German drugs and pesticides group Bayer AG (OTCMKT:BAYRY)  has reached a deal with the U.S. Justice Department for antitrust approval for its $62.5-B bid to acquire Monsanto Co. by agreeing to sell additional assets.

The Justice Department reached an agreement in principle with the two companies in recent days, the Journal said, citing people familiar with the matter. Under the deal, Bayer agreed to sell additional seed and treatment assets to BASF SE and agreed to make concessions related to digital agriculture.

Shares of Monsanto, the world’s biggest seed company, jumped 6.6%, to 125.66 and closed at 125.32 on the day.

Bayer declined comment on the report, but said in a statement it anticipated closing the Monsanto purchase in the second quarter.

“We remain confident in our ability to obtain all necessary regulatory approvals and look forward to continuing to work diligently with regulators to support that process,” it said.

A spokeswoman for BASF could not immediately be reached for comment.

The Department of Justice and Monsanto both declined to comment.

Last week, Monsanto said in its Quarterly earnings report that it was confident the US and other needed regulatory approvals would be secured within in Q-2.

Monsanto did not host a conference call with analysts to discuss the earnings, as is its usual practice, because of the pending merger.

European Union antitrust regulators approved the deal in March after the companies agreed to sell a swathe of assets to BASF.

China, Brazil and Australia have also approved the proposed merger.

The deal is the 3rd in the sector, preceded by a merger of Dow and Dupont, and a merger of ChemChina and Syngenta.

Symbol Last Trade Date Change Open High Low Volume
NYSE:MON 125.32 9 April 2018 7.46 118 126.8 117.41 12,556,089
HeffX-LTN Analysis for MON: Overall Short Intermediate Long
Neutral (0.00) Bullish (0.36) Neutral (-0.04) Bearish (-0.31)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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