Bayer has revealed plans to drop the 117-year old Monsanto brand name following the conclusion of the latter’s acquisition. In a statement, Bayer added that the acquired products under Monsanto will retain their brand names and become of the Bayer portfolio.
This comes as Bayer plans to complete the acquisition of Monsanto on 7 June 2018, following regulatory approvals. Plans to acquire Monsanto first emerged in May 2016 for approximately US$63 billion, as of 28 February 2018. In 2017, both companies together employed approximately 115,000 people, accounting for the divestments.
Through the move, Bayer planned to double the size of its agriculture business and create “a leading innovation engine in agriculture”, allowing it to better service customers and unlock long-term growth potential in the sector, Werner Baumann, chairman of the board of management of Bayer AG, said.
“We have diligently prepared for the upcoming integration over the past two years. Our extensive experience in integrating other large companies has proven that we can and will be successful,” Baumann added.
Following the acquisition of Mosanto and Bayer’s divestitures, the latter’s investment in R&D in 2017 would amount to €5.7 billion. In order to acquire Monsanto, Bayer secured initial bridge financing of US$57 billion. This is being refinanced by a combination of equity and debt transactions, some of which have already been completed.
In April, Singapore’s Temasek Holdings acquired around 3.6% of Bayer stock for €3 billion, amounting to around 31 million shares. The proceeds from the sale were used to contribute to the financing of Bayer’s proposed acquisition of Monsanto, an agricultural company. On completion of the deal, together with its existing shareholdings in Bayer, Temasek will hold approximately 4% of the issued capital stock of Bayer.