LONDON (ICIS)--Bayer expects to close the acquisition of US-based Monsanto this week and is set to retire the company name, the Germany-headquartered chemicals producer said on Monday.
Announced shortly after Bayer stated its intention to launch a €6bn rights issue to help finance the purchase, the company intends to complete the deal on 7 June, almost two years after the planned merger of the two agrochemicals giants was announced.
Following the deal close, Monsanto will no longer be a company name, ending over a century of the existence of the brand. Acquired product lines will retain their brand names and become part of the Bayer portfolio.
“We will double the size of our agriculture business and create a leading innovation engine in agriculture,” said Bayer CEO Werner Baumann.
The integration of the two companies is expected to begin around two months after the close of the deal, on the back of the US Department of Justice’ stipulation that the divestment of Bayer’s remedy package to BASF be completed first.
Bayer is projecting $1.2bn in annual synergies from the deal by 2022, although the extent of the divestments necessary to secure regulatory approval has trimmed that figure from earlier estimates of $1.5bn.
The deal, currently valued at around $63bn, is expected to contribute to earnings from 2019 onward, Bayer added.
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