Bayer considering bid for Monsanto: Report

By: | Published: May 12, 2016 7:02 PM

Bloomberg reported in March that Monsanto has been in contact with both Bayer and BASF SE about deals in agricultural chemicals.

BayerBoth companies declined to comment on the Bloomberg report. (Reuters)

 

Germany’s Bayer AG is exploring a bid for U.S. seed company Monsanto Co, Bloomberg reported, citing people familiar with the matter.

State-owned ChemChina’s deal for Syngenta and a merger between DuPont and Dow Chemical has dramatically changed the agricultural landscape in a matter of months. Monsanto, valued at about $40 billion as of Wednesday’s close, made a bid for Syngenta last year.

Monsanto’s shares were up 17.7 percent at $106.30 in premarket trading on Thursday. Bayer’s shares were down 3.8 percent at 96 euros.

Both companies declined to comment on the Bloomberg report.

Monsanto has long argued it needs to buy or team up with a large crop chemicals maker because farmers will increasingly look for one-stop shops offering seeds, pesticides and digital services such as satellite-guided spraying and harvesting.

Bloomberg reported in March that Monsanto has been in contact with both Bayer and Germany’s BASF SE about deals in agricultural chemicals.

Street Insider, citing sources, reported late on Wednesday that BASF was considering a bid for Monsanto.

BASF, whose shares were down slightly at 68.15 euros, declined to comment.

If Bayer goes ahead with a bid, it would raise pressure on BASF to consider an offer, Bloomberg said on Thursday, citing the people familiar with the matter.

But the sources told Bloomberg no decision had been made and that Bayer could decide against a bid or pursue other transactions with Monsanto, including joint ventures or asset sales.

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