Monsanto reportedly eyeing Bayer's crop science unit; deal price could top $30B

|About: Bayer A.G. ADR (BAYRY)|By:, SA News Editor

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%.

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