Monsanto rejects Bayer’s $62bn buyout offer

Monsanto has rejected Bayer’s $62 billion buyout offer that would have created the world’s largest agricultural supplier, calling the bid “incomplete and financially inadequate”, but said it was open to negotiate further.

“We are pleased that Monsanto’s board shares our belief in the substantial benefits an integrated strategy could provide to growers and broader society,” said Werner Baumann, chief executive (CEO) of Bayer.

In a statement, Bayer added that: “We are confident that we can address any potential financing or regulatory matters related to the transaction. Bayer remains committed to working together to complete this mutually compelling transaction.”

The rejection by Monsanto puts Bayer in a position where it has to decide whether to raise its offer.

Hugh Grant, CEO of Monsanto, said: “The current proposal significantly undervalues our company and also does not adequately address or provide reassurance for some of the potential financing and regulatory execution risks related to the acquisition.”

Bayer said that its $122 per share offer represents “full and certain value” for Monsanto shareholders.

Although Monsanto is open to negotiate further, the company said that there is no assurance that any transaction will be entered into.