Bayer enters advanced negotiations with Monsanto over proposed acquisition

German pharmaceutical company Bayer has confirmed advanced negotiations with American multinational agrochemical and agricultural biotechnology firm Monsanto over the proposed $62bn acquisition.

While the key terms and conditions have not yet been agreed, Bayer has created a new proposal to provide a transaction consideration of $127.50 for each Monsanto share only in connection with a negotiated transaction.

As of now, there is no assurance that the parties will enter into an agreement. If the acquisition is finalised, Bayer will be able to reinforce its position as a life science company.

The key conditions of a definitive transaction agreement must receive an approval from the Bayer supervisory board. The proposed transaction would be subject to regulatory approval and other customary closing conditions.

Bayer has been negotiating with Monsanto over the past few months. In July, the former increased its all-cash offer to Monsanto shareholders from $122 to $125 a share.

On 19 July, Monsanto rejected Bayer’s increased all-cash offer of $125 per share offer. Despite this, the chemical and pharmaceutical company continued the dialogue with Monsanto.