During the meeting, Werner Baumann, chief executive officer of Bayer, and Hugh Grant, chairman and CEO of Monsanto, said the driving force behind the Bayer-Monsanto combination is a desire to increase and accelerate innovation to help growers around the world address challenges such as climate change and food security.
“The United States is a global leader in agriculture, and the combination of Bayer-Monsanto will underscore that role and ensure the United States retains a pre-eminent position as the anchor of the industry,” the companies noted in a joint statement released Jan. 17. “The combined company expects to spend approximately $16 billion for R&D in agriculture over the next six years with at least half of this investment made in the United States. This is an investment in innovation and people that will create several thousand new high-tech, well-paying jobs after integration is complete, jobs that will keep America at the forefront of agricultural innovation and that serve U.S. farmers by delivering better products and services faster.
“More specifically, this is an investment in the U.S. heartland with global seeds and traits research and development for the combined company being headquartered in St. Louis, along with its agriculture North American commercial headquarters and additional research and commercial locations throughout the United States. These high-tech jobs will drive future innovation in agriculture: geneticists, roboticists, satellite imagery specialists, engineers, data scientists, advanced breeders and statisticians.”
Shareowners of Monsanto on Dec. 13, 2016, approved the company’s merger with Bayer AG. The transaction still remains subject to customary closing conditions, including the receipt of required regulatory approvals.
Leverkusen, Germany-based Bayer AG on Sept. 14, 2016, agreed to acquire St. Louis-based Monsanto Co. in an all-cash transaction for $128 per share, equating to a total purchase price of approximately $66 billion. The transaction price represents a 44% premium to Monsanto’s share price on May 9, 2016, the day before Bayer submitted its first written proposal to acquire Monsanto.