Bayer has made an all-cash offer to acquire all of the issued and outstanding shares of common stock of Monsanto for US$122 per share or an aggregate enterprise value of US$62 billion.

In a video interview on the company’s website, Bayer CEO Werner Baumann, discusses the proposed combination, which he describes as an 'extraordinary opportunity to create a global leader in the agricultural industry.'

"Monsanto is a perfect match to our agricultural business, we would combine complementary skills with minimal geographic overlap," he says.

"We at Bayer have a leading position in crop protection and Monsanto is extremely strong in seeds and trades, so jointly we will be an innovation powerhouse to address farmers’ future needs.

"This is particularly exciting in advancing digital farming. The proposed acquisition of Monsanto is strategically compelling and completely logical."

He adds how the deal would lead to farmers optimizing their harvests without compromising the environment.

Speaking directly about the financial side of the deal, Baumann claims the deal would create value for shareholders, customers and employees of both companies.

"The acquisition of Monsanto ticks all the boxes in terms of strategic fit and value creation potential. At the same time ongoing consolidation activities in the industry makes this combination the most attractive one.

"With no other decision, whether organic or M&A, can we make such a transformational step for a business and deliver such a major contribution to our financial profile at a price which is equally attractive to both shareholder groups.

"The strategic logic of the Monsanto acquisition is very compelling and we believe the timing is right."

At the time of writing, Monsanto had made no further announcement other than the statement released last week when news of the potential first broke.

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