Monsanto India shares rallied 6 per cent intraday on Thursday after the company on Wednesday announced that German chemical and pharma giant Bayer AG will acquire Monsanto for $128 per share in all-cash transaction, to create the world’s biggest seed and pesticide firm. At 1.15 pm, shares of Monsanto were trading 1.41 per cent up at Rs 2608.45. The scrip opened the day at Rs 2601 and has touched a high and low of Rs 2728.90 and Rs 2591.20, respectively, in trade so far. Later, the scrip settled 1.72 per cent down at Rs 2528.
Both the companies Monsanto and Bayer have presence in India with the US firm selling genetically modified (GM) cotton seeds in the country for more than a decade.
Hugh Grant, chairman and chief executive officer, Monsanto in a release said, “The announcement is a testament to everything we have achieved and the value that we have created for our stakeholders at Monsanto. We believe the combination with Bayer represents the most compelling value for our shareholder, with the most certainty through the all-cash consideration.”
According to PTI, Bayer had revised its offer multiple times before it finally clinched the deal. It first offered $122 per share, which was subsequently raised to $125 per share and $127.50. Finally, the deal was signed at $128 a share.
In the past one year, shares of the company have risen 10.16 per cent to Rs 2572.25 till September 14, whereas BSE Sensex jumped by 9.73 per cent during the same period.