Bayer successfully completed the acquisition of Monsanto on June 7, 2018 following the receipt of all required approvals from regulatory authorities.
Bayer is now the sole owner of Monsanto Company. According to the conditional approval from the United States Department of Justice (DOJ), the integration of Monsanto into Bayer can take place as soon the divestments to BASF have been completed. This integration process is expected to commence in approximately two months. Liam Condon, member of the Bayer Board of Management, will lead the combined Crop Science division when the integration commences.
Monsanto will operate independently from Bayer while Bayer completes the sale of some of its businesses to BASF. During this time, it will be business as usual for us, including our company name. Bayer will proceed with integrating Monsanto after Bayer has completed the divestitures to BASF. Once the integration begins, the company will be referred to as Bayer. Monsanto seed and other product brands (e.g. DEKALB, Asgrow, etc.) will retain their brand names and become part of the Bayer portfolio. While the company will be referred to as Bayer after the integration begins, the Monsanto legal entity structure will remain in place until a legal entity consolidation process can be completed. That process will take multiple years to complete.
This acquisition means doubling of the size of our agriculture business—making Bayer a leader in the sector. This is an incredibly pivotal time to be in agriculture; a sector which offers long-term growth potential, driven by a need for accelerated innovation—innovation that Bayer will be uniquely positioned to deliver.
This acquisition is an important and logical step in the evolution of our company. Over the past few years, we’ve focused our portfolio on building leading businesses in health and nutrition. Strengthening our position in agriculture is in line with this focus.
We are aware of and accept the heightened responsibility that a leadership position in agriculture entails and will work hard to live up to this responsibility through collaboration, dialogue, and transparency with our customers, our research partners, and all of society—including our critics.
“The acquisition of Monsanto is a strategic milestone in strengthening our portfolio of leading businesses in health and nutrition. We will double the size of our current business with a truly excellent combination of talent, technologies and customer reach. As a future leader in this space, we at Bayer will have a special responsibility. And we will do everything we can to live up to this responsibility. We will uphold the highest ethical, environmental and social standards, engage all stakeholders, and contribute to better and more sustainable agriculture.” – Werner Baumann, Chairman of the Board of Management of Bayer AG
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Certain statements contained in this communication may constitute "forward-looking statements". Actual results could differ materially from those projected or forecast in the forward-looking statements. The factors that could cause actual results to differ materially include the following: the risk that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected time-frames (or at all) and to successfully integrate Monsanto Company's ("Monsanto") operations into those of Bayer Aktiengesellschaft ("Bayer"); such integration may be more difficult time-consuming or costly than expected; revenues following the transaction may be lower than expected; operating costs, customer loss and business disruption (including difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater or more significant than expected following the transaction; the retention of certain key employees at Monsanto; the parties' ability to meet expectations regarding the accounting and tax treatments of the merger; the impact of refinancing of the loans taken out for the transaction; the impact of indebtedness incurred by Bayer in connection with the transaction and the potential impact on the rating of indebtedness of Bayer; the effects of the business combination of Bayer and Monsanto, including the combined company's future financial condition, operating results, strategy and plans; other factors detailed in Monsanto's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the "SEC") for the fiscal year ended August 31, 2017 and Monsanto's other filings with the SEC, which are available at http://www.sec.gov and on Monsanto's website at www.monsanto.com; and other factors discussed in Bayer's public reports which are available on the Bayer website at www.bayer.com. Bayer assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.