Monsanto shares jump on report of US approval of Bayer deal

US antitrust regulators are reportedly to greenlight the mega-deal after the companies agreed to sell additional assets
US antitrust regulators are reportedly to greenlight the mega-deal after the companies agreed to sell additional assets

Shares of agricultural giant Monsanto surged Monday following a report that the US Justice Department would approve its acquisition by Bayer, the last major hurdle facing the deal.

Near 1900 GM, Monsanto was up 6.5 percent at $125.47 after The Wall Street Journal reported US would greenlight the mega-deal after the companies agreed to sell additional assets.

US officials are requiring Germany's Bayer to divest additional seed and seed-treatment assets and adjust its digital agriculture business, The Journal reported, citing people familiar with the situation.

The European Union last month approved the deal following a pledge by the two companies to sell more than 6 billion euros ($7.4 billion) in assets.

Chinese officials had previously approved the deal.

The transaction, strongly criticized by farmers and environmentalists, was first announced in September 2016. The value of the deal was originally $66 billion but that was prior to a series of divestitures required by regulators.


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© 2018 AFP

Citation: Monsanto shares jump on report of US approval of Bayer deal (2018, April 9) retrieved 10 April 2021 from https://phys.org/news/2018-04-monsanto-bayer.html
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