Sun, May 22, 8:41 AM
- Now that Bayer's (OTCPK:BAYRY) bid for Monsanto (NYSE:MON) is out of the bag, attention has turned to how much the German company will need to pay for the seed giant.
- So far, neither side has disclosed the terms or structure of the takeover, but estimates compiled by Bloomberg range from $120-$150 a share, or a total value of up to $63B.
- Other concerns include how Bayer will finance the deal, keep its investment-grade rating, and stay on top of its non-agricultural businesses.
Wed, May 18, 9:52 PM
- Bayer (OTCPK:BAYRY) has made takeover overtures to Monsanto (NYSE:MON), The Wall Street Journal reports.
- Details were unclear, but a tie-up would result in the world's largest seed and crop-chemical company, with $67B in annual sales.
- Earlier, Monsanto's president and chief operating officer, Brett Begemann, called chatter about a takeover by Bayer or BASF "wild speculation because there's nothing there."
- Updated: A Monsanto statement says it's received an "unsolicited, non-binding proposal" from Bayer about a potential acquisition, and that the board is reviewing it in consultation with financial and legal advisers and won't comment otherwise.
- Now read Monsanto: Takeover Unlikely »
Wed, May 18, 2:35 PM
- Monsanto (MON -0.6%) slips as President and COO Brett Begemann says talk of a takeover by Bayer (OTCPK:BAYZF, OTCPK:BAYRY) or BASF (OTCQX:BASFY) is "wild speculation," and MON is staying focused on its own strategy.
- "It's all wild speculation because there’s nothing there," the COO tells Reuters at a BMO investor conference in New York.
- MON also says it expects farmers to plant its Xtend soybeans on more than 15M acres in North America next year, and believes the EU will approve imports by late summer or early fall.
- Now read Monsanto suspends new soybean technologies in Argentina
Thu, May 12, 3:37 PM
- Monsanto (MON +8.5%) remains sharply higher though off highs of the day, following headlines that Bayer (OTCPK:BAYRY -4.1%) and BASF (OTCQX:BASFY -1.7%) are considering a possible acquisition of the company.
- Financial Times reports that MON is interested in forming some sort of combination with the agrochemical businesses of either of the two companies but opposes any deal that would turn it into a division of a German company.
- Piper Jaffray analysts say the interest in acquiring MON is mere speculation, seeing a potential joint venture as a more likely outcome as "we believe Monsanto remains committed to building a chemistry business."
- J.P. Morgan believes Bayer would need to raise equity given the size of the deal, and thinks Bayer investors likely would be only lukewarm around the potential deal given limited accretion and investor desire for Bayer to strength its pharma pipeline following recent setbacks.
- Analysts say a MON takeover likely would draw intense scrutiny from global regulators already confronting an unprecedented wave of consolidation in the crop chemicals industry involving the likes of Dow Chemical (DOW +0.8%), DuPont (DD +0.2%) and Syngenta (SYT +0.4%).
- Now read Seed war sparked: Bayer and BASF to battle over Monsanto?
Thu, May 12, 8:13 AM
- Monsanto (NYSE:MON) now +17.7% premarket as Bloomberg reports that Bayer (OTCPK:BAYZF, OTCPK:BAYRY) is exploring a $40B takeover bid for the company.
- Bayer has held preliminary discussions internally and with advisers about how to finance a deal, including potential asset sales, according to the report.
- MON already was moving higher after StreetInsider reported interest in the company from BASF (OTCQX:BASFY).
- A deal would create the world’s largest supplier of seeds and farm chemicals, and boost Bayer and MON amid a wave of consolidation in the industry after Dow Chemical and DuPont announced last year plans to combine operations in a $130B deal while ChemChina agreed in February to buy Syngenta for $43B.
Fri, Mar. 18, 7:28 PM
- Reuters reports Monsanto (NYSE:MON) has shown interest in Bayer's (OTCPK:BAYRY) crop science unit, including for a potential $30B+ acquisition. The news service cautions initial talks were preliminary; sources state another meeting is set for April.
- Monsanto reportedly sees "valuable synergies" between its seed business and Bayer's crop-protection assets. An acquisition, a JV, or some other type of partnership are the possibilities that have been discussed.
- Bayer's crop science business had 2015 revenue of $11.7B and adjusted EBITDA of $2.72B. Bayer has an estimated 18% crop chemical market share (#2 overall). Syngenta, which spurned Monsanto's buyout overtures last year and later agreed to sell to ChemChina for $43B, leads the market at 19%.
Dec. 11, 2015, 7:07 PM
- Farm groups are calling for regulators to closely scrutinize the proposed merger of Dow Chemical (NYSE:DOW) and DuPont that could give the companies more clout in the markets for seeds and pesticides.
- Chemicals and materials businesses would comprise most of DowDuPont's revenues, but the markets for those products tend to be fragmented; the combined companies' agriculture business would boast big market shares, such as 41% of sales of U.S. corn seeds and related genetics vs. DuPont’s current 35% and Dow’s 6%.
- Also, the merger could cause further deals among the six companies that currently dominate the global market for seed and crop chemicals, a group that also includes Monsanto (NYSE:MON), Syngenta (NYSE:SYT), Bayer (OTCPK:BAYZF, OTCPK:BAYRY) and BASF (OTCQX:BASFY).
- But Dow and DuPont do not appear to expect antitrust problems; DuPont CEO Ed Breen says the companies plan to divest only modestly - “nothing that would move the needle."
Jun. 23, 2015, 10:47 AM
- Facing a tough time from Syngenta (SYT -0.6%), Monsanto (MON -0.7%) is exploring other options should the former reject its $45B offer.
- Monsanto would approach Germany's Bayer (OTCPK:BAYRY -0.1%) about acquiring its crop chemicals business if it can't buy Syngenta, Brett Begemann, Monsanto's chief operating officer, told Bloomberg.
- "I don’t know what Bayer is going to do with their crop-protection business, whether they’ll sell it or not," Begemann said, "But I’m sure they’d be happy to talk about some other kind of marketing arrangement."
- Previously: Syngenta Chairman comments on Monsanto's approach (Jun. 23 2015)
Jun. 10, 2015, 2:57 AM
- Bayer (OTCPK:BAYRY) has agreed to sell its Diabetes Care business to Panasonic Healthcare, a joint venture backed by buyout firm KKR, for €1B. The unit makes blood-glucose monitoring systems and lancing devices.
- Besides the diabetes sale, Bayer intends to list its plastics unit on the stock market, as it looks to focus on more lucrative life-sciences businesses.
- Previously: Rumored price for Bayer's diabetes device business continues to slide (Mar. 30 2015)
- Previously: KKR's Panasonic Health Care nearing deal for Bayer diabetes unit (Feb. 19 2015)
May 29, 2015, 12:19 PM
- Bayer's (OTCPK:BAYRY) (OTCPK:BAYZF) current #5 rank in the global animal health market could change once it divests its low margin plastics business either via an IPO or direct sale, possibly to a private equity firm. Analysts believe the unit could fetch as much as 11B euros ($12.1B).
- CEO Marijn Dekkers says animal health is a "very attractive business for us. We've always looked with interest in it. It hasn't happened with us yet."
- The top acquisition target would be Zoetis (ZTS +0.8%) which generated $4.8B in sales in 2014. Bayer will probably have competition, though. Valeant Pharmaceuticals (VRX -1.7%) and Merck (MRK +0.2%) have been mentioned as likely suitors.
May 4, 2015, 6:35 PM
- Syngenta (NYSE:SYT) fell 7.6% in today's trade, giving up some but not all of its 16% gain on Friday that was sparked by talk that Monsanto (NYSE:MON) had approached the company about a takeover.
- The biggest concern for regulatory approval may involve what would be an unprecedented market share in soybeans and corn seeds for the combined company, and analysts say SYT’s operations in those areas would appeal to a range of buyers including Dow Chemical (NYSE:DOW), DuPont (NYSE:DD), BASF (OTCQX:BASFY, OTCPK:BFFAF) and Bayer (OTCPK:BAYZF, OTCPK:BAYRY).
- Colin Isaac of Atlantic Equities says the deal he always expected to happen is a DuPont purchase of Dow's agriculture unit; CEO Andrew Liveris has suggested Dow is open to divesting the unit, and MON's becoming a much stronger competitor after an SYT takeover could be a catalyst for Dow to more seriously consider exiting the business, which Issac says would be prime pickings for DuPont and its Pioneer seed business.
- A $19.5B bid by DuPont for Dow’s ag sciences business could generate a 7% return on invested capital, according to a report by Laurence Alexander at Jefferies, while adding that such a move is less likely until agricultural markets improve from current trough levels.
Apr. 30, 2015, 4:55 PM
- Syngenta (NYSE:SYT) +12.6% AH after Bloomberg reports it has been approached by Monsanto (NYSE:MON) about a possible takeover.
- Combined with SYT, MON would become the largest player in the world for both seeds and crop chemicals and a formidable competitor to Bayer (OTCPK:BAYZF, OTCPK:BAYRY), BASF (OTCQX:BASFY, OTCPK:BFFAF) and Dow Chemical (NYSE:DOW).
- Reports last year had said the companies held preliminary talks with advisers about a combination before SYT management decided against negotiations.
Nov. 24, 2014, 4:04 PM
- Sources close to the matter say Bayer (OTCPK:BAYRY) (OTCPK:BAYZF) is exploring the sale of its diabetes device business as it focuses on higher growth areas. The company is supposedly working with Credit Suisse on the potential deal. Observers believe the unit could fetch between €1B - 2B ($2.5B).
- Bayer also intends to jettison its plastics business.
Aug. 29, 2014, 9:05 AM
- People familiar with the situation say that the Belgian OTC drug maker Omega Pharma NV has attracted interest from a number of pharmaceutical companies including Perrigo (NYSE:PRGO), Boehringer Ingelheim, Bayer (OTCPK:BAYZF) (OTCPK:BAYRY) and Sanofi (NYSE:SNY) (OTCQB:SNYNF).
- The tab for acquiring the business could be as high as 4B euros ($5.3B).
Jul. 21, 2014, 8:56 AM
- German private equity firm Aurelius has agreed to buy Reckitt Benckiser's (OTCPK:RBGLY) Scholl shoe business. The company is expecting the brand to expand internationally and maintain growth.
- Aurelius will acquire the international rights to the business, except for North and South America, which will go to Bayer (OTCPK:BAYRY) as part of its $14B purchase of Merck (NYSE:MRK).
- The deal is expected to close in the third quarter of 2014.
May 15, 2014, 7:41 AM
- Boston Scientific (BSX) has agreed to acquire Bayer's (BAYRY) Interventional device business for $415M.
- The deal that will strengthen Boston's portfolio of products for treating peripheral vascular disease, with the company to receive systems used in cardiology, radiology and peripheral vascular procedures.
- The unit generated $120M in sales last year. (PR)
Bayer is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. At the same time Bayer creates value through innovation, growth and improved earning power. <br /> <br />Bayer HealthCare AG researches, develops, manufactures and markets... More
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Industry: Chemicals - Major Diversified
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