By Justin Walker
Communications Specialist
The $62.5 billion takeover of U.S.-based Monsanto Company by German Bayer may be complete in just a few months, thanks to positive sales in 2017 and conditional approval from more than half the required antitrust authorities.
“We took major steps toward the proposed acquisition of Monsanto,” Werner Baumann, Bayer management board chairman, said.
Baumann said, operationally, 2017 was full of ups and downs for Bayer. Cash flow from continuing operations rose 2.7 percent, while net financial debt declined by 69.5 percent.
“We are pleased that we were able to substantially reduce our net financial debt in 2017,” Johannes Dietsch, chief financial officer, said.
That will help as the takeover of Monsanto moves forward, Dietsch said.
He said the company is pleased it has gained approval from Brazilian antitrust officials.
“That is an important milestone on the road to closing this transaction. After all, Brazil is one of the world’s most important agricultural markets,” Dietsch said.
The European Union, under the EU Merger Regulation, approved the merger, as long as Bayer divests its overlapping seed and pesticide lines to ensure there is competition in the marketplace. Bayer has also reportedly committed to grant a license to its entire global digital agricultural product portfolio and pipeline products for the same reason.
Bayer has gained approval from more than half the 30 worldwide authorities. They lack approval from the United States, Canada and Mexico.
“Our goal now is to be able to close the transaction in the second quarter of 2018,” Baumann said. “This does not affect our expectation of a successful conclusion to the regulatory review, nor our conviction that this is the right step.”