March 21, 2016
Monsanto interested in acquiring Bayer''s crop science unit
Monsanto is interested in acquiring Bayer AG''s crop science unit, a deal which could amount to more than US$30 billion, according to sources familiar with the matter.
As high inventories and low commodities prices affects the world''s seed and crop protection market, Monsanto exudes a continual eagerness for consolidation in the industry.
In fact, the company''s executives had discussed about Monsanto''s interest in obtaining Bayer''sagricultural asset during a meeting in Chicago, US, Reuters reported. The company perceives valuable synergies between its seed business and Bayer''s crop protection assets.
One potential decision is a complete takeover of the crop science unit. Another possibility in consideration is a joint venture or other forms of partnership between Monsanto and Bayer.
Talks are, however, still in their early stages as another meeting between both companies has been scheduled for April.
Bayer is also assessing Monsanto''s intent for the company although it has no plans to sell its crop science division. The company has mentioned that it will maintain its ownership of the unit as it is an "integral" component of its corporate structure.
Bayer''s crop science division focuses on seeds, crop protection and non-agricultural pest control, with sales amounting to about US$11.7 billion last year.
- Reuters