Bayer’s planned June 7, 2018, acquisition of Monsanto did close that day. Monsanto shareholders were paid $128 per share, and Monsanto became a wholly owned Bayer subsidiary. The legal closing transferred ownership; it did not mean the companies could immediately integrate their operations.
What happened on June 7, 2018?
Bayer announced on June 4 that it expected to complete the acquisition on June 7, subject to regulatory approvals. Bayer confirmed completion on June 7. Monsanto shares stopped trading on the New York Stock Exchange, and Monsanto became a wholly owned Bayer subsidiary.
At closing, Monsanto shareholders received $128 per share, the consideration set out in the transaction agreement. This per-share payment is distinct from Bayer’s broader cost estimate: on June 4, Bayer estimated the total at approximately $63 billion, including Monsanto debt outstanding as of February 28, 2018.
Why closing did not mean immediate integration
Legal ownership and operational integration were separate steps. Under the conditions of the U.S. Department of Justice’s approval, Bayer and Monsanto had to remain separate and operate separately until the required divestitures to BASF were completed. Bayer said it expected those divestitures to take about two months. In August 2018, Bayer reported that the conditions had been fulfilled and that integration could begin.
Free tools Windows power users keep installed
One-click scans. No signup required.
#1 Best Overall
- Roundup Dual Action 365 Weed & Grass Killer Plus 12 Month Preventer with Comfort Wand provides one-step weed protection for up to 12 months
- Our weed control kills and prevents many types of tough weeds and grasses for up to 12 months, including clover, dandelion, large and smooth crabgrass, poison ivy, and other broadleaf weeds, grassy weeds and brush
- Roundup Dual Action 365 Weed & Grass Killer Plus 12 Month Preventer with Comfort Wand is rainproof in as fast as 30 minutes and produces visible results in hours
- Use this weed preventer where you want to kill existing weeds AND prevent new weeds for up to 1 year, such as cracks and crevices in driveways, sidewalks, and walkways, patios, paths, and under decks, gravel areas, and other non-lawn areas
- The easy-to-use Comfort Wand with one-touch continuous spray means no more tired, aching hands
The regulatory steps reflected competition concerns. On May 29, 2018, the U.S. Department of Justice announced a negotiated divestiture. The European Commission had found the transaction compatible with the internal market and the European Economic Area Agreement subject to conditions.
What the deal meant for the Monsanto name
Bayer said it would remain the company name and that acquired products would keep their brand names. Monsanto, however, would cease to be a company name. The corporate change therefore did not mean that every product formerly associated with Monsanto would immediately be renamed.
Rank #2
- Roundup Weed & Grass Killer₄ kills tough weeds and grasses to the root, including dandelion, crabgrass, poison ivy, clover (red & white), spotted spurge, and other broadleaf weeds
- It is rainproof in as fast as 30 minutes and produces visible results in hours
- Allows for planting 1 to 30 days after application (see booklet for details)
- Use in or around flower beds and perennial landscape plants, around trees and shrubs, on patios, walkways, and driveways, gravel, or mulch beds, along fences and foundations, and edging around foundations and retaining walls
- The Pump ‘N Go 2 Sprayer with an extendable wand provides up to 10 minutes of continuous spray and provides greater accuracy without bending over
What Bayer forecast at the time
In announcing the closing, Bayer described expected benefits for the combined agriculture business. These were company forecasts made in 2018, not proof of outcomes subsequently achieved:
- Bayer estimated pro forma agriculture research and development investment of €2.4 billion in 2017, taking divestitures into account.
- Bayer forecast a positive contribution to core earnings per share beginning in 2019.
- Bayer expected annual EBITDA synergies of $1.2 billion from 2022, adjusted for divestitures.
Bayer’s stated rationale was that the acquisition would strengthen its portfolio in health and nutrition. That was the company’s characterization of the deal, not an independent assessment of its effects.
Quick Recap
Best Value
- Roundup For Lawns₁ is a ready-to-use tough weed killer for Northern grasses that kills weeds, roots and all (when used as directed), with up to 3 month weed control (as listed)
- Kills 253 types of weeds (see inside booklet for weed list), including crabgrass, dandelion, clover, yellow nutsedge, poison ivy, chickweed, oxalis, and purslane
- Roundup For Lawns₁ starts working immediately and is rainproof in 3 hours
- Use this tough weed killer on listed Northern grasses, including Kentucky Bluegrass, Perennial Ryegrass, Fescue spp. including Tall, Red, and Fine Leaf Fescues, and Zoysiagrass
- The easy reach extendable spray wand makes application a breeze with its continuous spray
Rank #4
- Roundup Weed & Grass Killer₄ with Comfort Wand kills tough weeds and grasses to the root, including dandelion, crabgrass, poison ivy, clover (red & white), spotted spurge, and other broadleaf weeds
- It is rainproof in as fast as 30 minutes and produces visible results in hours
- Allows for planting 1 to 30 days after application (see booklet for details)
- Use in or around flower beds and perennial landscape plants, around trees and shrubs, on patios, walkways, and driveways, gravel, or mulch beds, along fences and foundations, and edging around foundations and retaining walls
- The easy-to-use Comfort Wand with one-touch continuous spray gives your hands a break
Rank #3
- Roundup Weed & Grass Killer₄ kills tough weeds and grasses to the root, including dandelion, crabgrass, poison ivy, clover (red & white), spotted spurge, and other broadleaf weeds
- It is rainproof in as fast as 30 minutes and produces visible results in hours
- Allows for planting 1 to 30 days after application (see booklet for details)
- Use in or around flower beds and perennial landscape plants, around trees and shrubs, on patios, walkways, and driveways, gravel, or mulch beds, along fences and foundations, and edging around foundations and retaining walls
- Roundup Weed & Grass Killer₄ Refill is the fast and easy way to refill your Weed & Grass Killer₄
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
