By Jim Steadman
Bayer completed its acquisition of Monsanto on June 7, following the receipt of all required approvals from regulatory authorities.
“The acquisition of Monsanto is a strategic milestone in strengthening our portfolio of leading businesses in health and nutrition,” said Werner Baumann, chairman of the Board of Management of Bayer AG, in a company statement. “We will double the size of our agriculture business and create a leading innovation engine in agriculture, positioning us to better serve our customers and unlock the long-term growth potential in the sector.”
Bayer’s acquisition of Monsanto – worth approximately $63 billion – has been two years in the making. As part of the regulatory approvals, Bayer agreed to divest multiple seed and chemical assets, including the Liberty Link technology and the Stoneville and FiberMax cottonseed brands. The majority of those assets are being acquired by BASF, with that transition beginning immediately. The final integration of Monsanto into Bayer should begin within two months, following the BASF transition.
“We have diligently prepared for the upcoming integration over the past two years,” said Baumann. “Our extensive experience in integrating other large companies has proven that we can and will be successful.”
According to the statement, Bayer will remain the company name, with the Monsanto name disappearing. All acquired products will retain their brand names and become part of the Bayer portfolio. The combined unit will be based in Monheim, Germany, while the North American business and seeds division will be headquartered in St. Louis.
After all facets of the deal are in place, the new company plans to:
Provide a full offering of innovative technologies and solutions. “The combination of the two businesses will allow us to deliver more innovation faster and provide solutions tailored to the needs of farmers around the world,” said Liam Condon, Bayer Board member and president of the Crop Science Division. “Going forward, our teams in the labs and in the field will be able to take a much more holistic approach to innovation as we address the enormous challenges we face in agriculture.”
Strengthen its commitment to sustainability and responsibility. In its statement, Bayer leadership notes that it is fully aware of the heightened responsibility that comes with a leadership position in agriculture, and will continue to strengthen its commitment to sustainability. “We will apply the same rigor to achieving our sustainability targets as we do to our financial targets,” said Baumann.
Enhance stakeholder engagement. Baumann said: “We aim to deepen our dialogue with society,” noted Baumann. “We will listen to our critics and work together where we find common ground. Agriculture is too important to allow ideological differences to bring progress to a standstill. We have to talk to each other. We need to listen to each other. It’s the only way to build bridges.”Source: Cotton Grower