German chemicals giant Bayer announced Wednesday a $66 billion deal to buy controversial US seeds and pesticides firm Monsanto, triggering immediate criticism from farmers and environmentalists. After a months-long pursuit, Bayer said its US peer had accepted an improved offer of $128 per share for Monsanto in an all-cash transaction, avoiding the need to resort to a hostile take-over.
If completed, the 58.8-billion-euro deal would mark the largest-ever takeover by a German firm and would create one of the largest firms in the agribusiness sector. "The combination with Monsanto represents the kind of revolutionary approach to agriculture that will be needed to sustainably feed the world," Bayer chief executive Werner Baumann told investors in a conference call.
But investors' reaction in the US, where Monsanto shares rose 0.6 percent but remained more than $21 below the deal price, suggested deep market doubts that the deal can pass financial and antitrust hurdles. Bayer's share price initially leapt on news of the deal but fell back as the afternoon wore on, gaining 0.3 percent to 93.55 euros. Meanwhile environmental groups geared up for a fight. In a nod to fierce opposition in Europe to Monsanto's use of genetically modified crops and its potent herbicide Roundup, Friends of the Earth labelled the tie-up a "marriage made in hell". "This mega corporation will be doing its best to force damaging pesticides and GM seeds into our countryside," campaigner Adrian Bebb said in a statement.
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