The U.S. Department of Justice has given Bayer AG the go-ahead for its multibillion-dollar takeover of Monsanto Co., around two years after the company made its first approach in May 2016. The deal is the largest foreign acquisition by a German company ever, and Bayer had to agree to a series of concessions amounting to about $9 billion to get U.S. and EU regulatory approval.
Following a monthslong courtship and two rebuffed bids, Monsanto agreed in September 2016 to an all-cash offer of $57 billion, or $128 a share, around 5% higher than Bayer’s initial $122-a-share bid. Including debt, the deal’s value is around $62.5 billion. The sweetened offer represents a 44% premium over Monsanto’s closing share price on the day before Bayer’s first written proposal. Bayer’s shareholders were largely content with the price. After all, some analysts predicted that the company would have to offer as much as $135 a share.
