After receiving the required approvals, Bayer is set to complete its acquisition of Monsanto. As of June 7, Bayer will be the sole shareholder of Monsanto, which will double the size of its agriculture business in what is being called the largest acquisition in the company’s history.
Approval from the United States Department of Justice was the final hurdle Bayer, the German pharmaceutical and pesticide company, had to overcome before it could start integrating Monsanto into its business. Under a conditional approval, Bayer is required to divest to BASF before the integration can start, which is expected in approximately two months. The divestiture of business “generated 2.2 billion euros in sales in 2017,” according to.
“We will double the size of our agriculture business and create a leading innovation engine in agriculture, positioning us to better serve our customers and unlock the long-term growth potential in the sector,” Werner Baumann, chairman of the Board of Management of Bayer AG, said.
The acquisition, which was announced back in May 2016, will total a $63 billion cash deal after Monsanto’s debt was taken into account. While Bayer will remain the name of the company, Monsanto’s acquired products will keep their brand names and integrate into Bayer’s portfolio.
But no matter what the name, on June 7 “one of the world’s largest pesticide producers will be combined with the world’s largest seed company,” NPR reported, and the acquisition will be one of the largest in the agriculture industry.