Monsanto restarts negotiations with BASF regarding possible merger of agrochemicals units
Monsanto Company [NYSE:MON], a St Louis, Missouri-based seeds company, has restarted negotiations with the German chemicals group BASF [ETR:BAS] regarding a possible merger of their agrochemicals units, according to a newswire report. A Bloomberg report on 13 July cited people familiar with the matter for the information.
Monsanto is looking at options other than a takeover bid from Bayer [ETR:BAYN], the people said. One of those options is to acquire BASF’s agrochemicals business, paying with new Monsanto shares, the people added. The talks are not far advanced and the two parties have yet to make any final decisions, according to the people familiar.
Monsanto’s discussions with Bayer are ongoing, the people said. Monsanto in May rebuffed a USD 122 (EUR 110) per share takeover bid from Bayer on the grounds that it undervalues the company. Monsanto indicated in its financial results in June that it had been talking to Bayer and other parties regarding alternative options, the article noted.
The Monsanto board is divided over the prospective deals with Bayer and BASF, according to one of the people cited by the report. Some executives want Monsanto to retain its independence, while others are in favour of a takeover, the item said.
Monsanto shareholders would likely put pressure on the company should it decide to acquire the BASF agrichemicals unit with its own shares rather than accept Bayer’s all-cash bid, according to one of the people cited by the report.
BASF and Monsanto representatives refused to comment, the article said.