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The Monsanto-Bayer Merger: What Are the Updates?

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Update on the merger

In its fiscal 2Q18 earnings release, Monsanto (MON) provided an update on the progress of its proposed merger with Bayer. After delays mainly due to regulatory bodies in the various jurisdictions, the merger is expected to be completed in the first half of 2018.

Recently, Monsanto received approval from the European Union. Approvals from Russia and the United States through the FTC (Federal Trade Commission) are still pending. To learn more, read Bayer-Monsanto Deal Receives European Union Approval.

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Path to completion

Monsanto stated that it has received regulatory approvals from two-thirds of the required authorities. They include the European Union, China, and Brazil.

Earlier, the Brazilian regulatory agency CADE (Administrative Council for Economic Defense) stated that the merger between Monsanto and Bayer will negatively impact two of Brazil’s key crop markets—soybeans and cotton. CADE said most Brazilian companies depend on these two markets to source their seeds.

The Monsanto-Bayer merger would be an all-cash consideration at $128 per share of Monsanto, which continues to trade below that level at $117.90 as of April 5, 2018.

Recently, PotashCorp (POT) and Agrium (AGU) received approvals from regulatory authorities around the world. The companies began their first trade as a new company called Nutrien (NTR) at the beginning of this year.

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