After reports last week that Bayer was considering making an offer, Monsanto has confirmed it has received an acquisition proposal from the German chemical and pharmaceutical company.
The company issued the following statement late Wednesday:
In response to recent media reports, Monsanto Company disclosed that it has received an unsolicited, non-binding proposal from Bayer AG for a potential acquisition of Monsanto, subject to due diligence, regulatory approvals and other conditions. The Board of Directors of Monsanto is reviewing the proposal, in consultation with its financial and legal advisors. Monsanto will have no further comment until its Board of Directors has completed its review. There is no assurance that any transaction will be entered into or consummated, or on what terms.
Bayer followed with its own statement, saying Bayer and Monsanto executives recently met to discuss an acquisition of Monsanto.
“The proposed combination would reinforce Bayer as a global innovation-driven Life Science company with leadership positions in its core segments, and would create a leading integrated agriculture business,” said Bayer.
The proposal follows ChemChina’s deal in February to acquire Syngenta, and Dow and DuPont’s merger announced in December.
What would the implications from Bayer acquiring Monsanto be for Canadian agriculture? We explored some of the potential impact in this post last week.