The Board of Directors of Bayer CropScience Limited and Monsanto India Limited, at its Meeting held inter alia, has considered the amalgamation of Monsanto India Limited with Bayer CropScience Limited.
Bayer, a German stock corporation, is a life sciences company with core competencies in the areas of health care and agriculture. The activities of Bayer have carried out in three divisions i.e. pharmaceuticals; consumer health; and crop sciences.
Bayer CropScience Limited (BCL) is the listed Indian arm of Bayer AG engaged in the business of manufacturing, selling, marketing of pesticides and pest control products, distribution of seeds and provision of services in the field of agriculture. Other than BCL, In India, Bayer also operates through various group companies.
Monsanto, incorporated in the United States of America, is an agricultural company, which provides seeds, biotechnology traits and crop protection, globally. In addition, Monsanto is active in providing digital farming solutions, globally. Monsanto is present in India through its subsidiaries viz; Monsanto India Limited, Monsanto Holdings Private Limited, Monsanto Investments India Private Limited and Mahyco Monsanto Biotech (India) Private Limited. In India, Monsanto provides: (a) high-yielding conventional and biotech agricultural and vegetable seeds; (b) weed control solutions; and (c) advanced traits and technologies.
Monsanto India Limited (MIL) is the listed Indian arm of Monsanto Company engaged in the business of production and sale of agricultural inputs, namely, chemicals and hybrid seeds. The company is listed on BSE & NSE.
Worldwide acquisition of Monsanto by Bayer
To establish its command on world’s seeds & Pesticides, Bayer had announced its intention to acquire Monsanto in May 2016 and signed an agreement with the US company for USD 128 per share in September 2016. Bayer acquired Monsanto at Enterprise Value of $ 66 billion (Net Debt). Bayer financed the transaction with a combination of Equity and debt.
Bayer is a leader in crop protection portfolio & Monsanto is having a strong hold in conventional and biotech seeds, traits and digital agricultural tools. Monsanto has a significant presence in North & South America while Bayer has a strong presence in Europe. The acquisitions of Monsanto gave Bayer opportunity to offer a wide set of solutions to the farmers & expand its wings to American Continents.
Bayer successfully completed the acquisition of Monsanto in June 2018 after fulfilling one of the requirements of the U.S. Department of Justice that Bayer and Monsanto remain separate companies and continue to operate separately until completion of these divestments to BASF. As per the press release by Bayer, Monsanto will no longer be a company name. It is not yet clear whether they will merge the Monsanto with Bayer or will continue to operate it separately with a different name.
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