Bayer signs Monsanto buyout in $88bn deal

The landmark buyout ends months of speculation, creating one of the world’s largest agrichemical firms.

The deal ends a months-long courtship by the German pharmaceuticals and chemicals giant. Picture: Josh Smith.

Bayer AG on Monday said it would buy Monsanto for $US66 billion ($88.25bn) including debt, creating one of the world’s largest agrichemical firms.

The deal ends a months-long courtship by the German pharmaceuticals and chemicals giant of the US seed maker and will be the largest foreign corporate takeover ever by a German firm.

Bayer plans to pay $US128 a share for Monsanto in an all-cash transaction, up from its latest offer last week of $US127.50 a share, the companies said. The agreed total price was a roughly 6 per cent increase over Bayer’s original offer in May of $US122 a share.

Bayer said it expected the deal to generate synergies of $US1.5 billion after the third full year following the closing.

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