Bayer's Monsanto Offer @ $62 billion to be the largest ever by a German company

Bayer AG in an aggressive move has offered to buy Monsanto in an all cash deal valuing the equity of Monsanto at $53 billion. The offer stands at $ 62 billion a whopping 37 percent premium to its May 9 closing prices. 

The transaction if  successful will be hitting the headlines as it will be the largest deal of the year (2016) so far. The $ 43 billion acquisition of Swiss company Syngenta by China National Chemical Corp is the largest deal concluded in the  year 2016. This move highlights reshaping of the crop and seed industry globally by large acquisitions.

It is reported that the newly found aggression is coming from the recently appointed chief executive officer (CEO) Werner Baumann's style and ambitious targets. This acquisition will be the largest corporate takeover ever by a German company. 

According to Bayer AG this acquisition would create a leading integrated agriculture platform with a broad product portfolio. The combined business would benefit from a combined R&D pipeline that would deliver valuable and innovative solutions for farmers, with a focus on long-term investments to help advance the next generation of farming.The planned  combination with Monsanto is an extraordinary opportunity to create a global leader in the agriculture industry and Monsanto is a perfect match to Bayer's agriculture business. There will be minimal geographical overlaps as well and the merger will bring in synergies worth $ 1.5 billion in savings over a three year period, according to Bayer management's commentary. 

Both Bayer AG and Monsanto have a listed subsidiary in India. Usually the acquiring company's stock prices adjust downwards and the target company's stocks advance on account of such a corporate event getting triggered.