The agriculture industry is at the heart of one of the greatest challenges of our time: how to feed an additional 2.2 billion people in the world by 2050 in an environmentally sustainable way.
Land used for agriculture can hardly be expanded, which is why per capita acreages are decreasing. There’s also a growing threat to harvests from extreme weather conditions and a changing climate. Farmers around the world, with farms both big and small, all face a common challenge: how to grow healthy, safe and affordable food in a sustainable way.
At Bayer, innovation will be the driving force behind providing farmers with a range of new, tailored solutions aimed at helping advance the next generation of farming and addressing some of society’s most pressing challenges:
The acquisition represents a major step forward for our Crop Science business and will reinforce Bayer as a global innovation-driven Life Science company with leadership positions in its core business segments. Yet innovation of the magnitude needed requires a high level of investment, which is another reason why combining our expertise and resources is so crucial. The investment spent in R&D in other industries like technology and pharmaceuticals far exceeds that of agriculture. Our significant investments in R&D will allow us to bring breakthrough innovation to help feed a hungry and growing planet.
Including Monsanto and taking the divestitures into account, our health and agriculture businesses would have been roughly equal in size in 2017, with total pro forma sales of around 45 billion euros including Crop Science sales of around 20 billion euros. The acquisition is anticipated to generate significant value. We expect a positive contribution to core earnings per share starting in 2019. From 2021 onward, that contribution is expected to be double-digit percentage. Moreover, adjusted for divestments, we expect synergies to deliver annual contributions of 1.2 billion U.S. dollars to EBITDA before special items as of 2022.
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