Monsanto, Bayer, Dow-DuPont Update

Randall Weiseman Field Crops, General, Specialty Crops

It’s been announced that a second attempt by Bayer AG to purchase Monsanto has been rejected. The Wall Street Journal Reports the second offer did not include more money, but was a request for detailed business information, known as due diligence, which Bayer said could lead to a higher offer. Monsanto saw the offer as little change compared to the $62 billion proposal Bayer originally offered. Monsanto is refusing to grant such access until Bayer raises its bid.

Monsanto also asked for clarity on other matters including regulatory risks before agreeing to a deal. Bayer has secured the financing needed to complete the original proposal. The deal would combine Monsanto, the biggest seed provider with a leading position in biotech crop development, with Bayer, which has a robust lineup of pesticides but a smaller presence in major crops like corn and soybeans.

And it’s also been announced that the stockholders for Dow Chemical and DuPont will hold separate shareholder meetings next week to vote on the proposed merger between those two companies. Both meetings will be held on July 20th.

DuPont’s meeting will take place at its Wilmington, Delaware, headquarters, and Dow Chemical’s meeting will be at its Midland, Michigan, offices.

The two companies announced a merger in December worth more than $120 billion. Once completed, Dow and DuPont will split into three separate publicly traded companies focused on agriculture, material science and specialty products. The combined company would have about $90 billion in total revenue, based on 2014 numbers. If approved, the merger would mark the end as independent entities of two of America’s oldest corporations as DuPont was founded in 1802 and Dow started in 1897.