Bayer Is Acquiring Monsanto in a $66-Billion Dea

 

business handshakeWhile news of Biotech giant Monsanto getting into financial problems due to issues with their GMO products. The firm has been losing money as well since there were a lot of controversies that came out surrounding their different products and how they make money from it. But if you think that Monsanto is going down for good, then think again. There has been news that another biotech and pharmaceutical giant may be acquiring the beleaguered company anytime soon.

There has been recent news that Bayer of Germany is set to acquire Monsanto in a bid to take over the company for a deal valued at an incredible $66 billion. When the said deal is consummated, it will create a vast conglomerate that covers the pharmaceuticals, medical and health products as well as pesticides. Bayer is said to be buying Monsanto shares at $128 per unit. This values the biotech company at $56 billion. As part f the deal, Bayer will also be shouldering Monsanto’s $10 billion in debts.

But before biotech proponents rejoice, the merger is still up for review. Every acquisition on the scale this big may need to be looked into by government regulators in order to determine if it is all in the nest interests of the market and the team up will not pose undue advantage against competition. No matter what the case, Monsanto still stands to gain something as it will receive a $2 billion payoff from Bayer in case the deal does not pull through. We’ll just have to wait and seeĀ  where this all leads and what will become of the GMO market once this merger is finalized.

 
Both comments and pings are currently closed.