Under the terms of the merger, shareholders will receive $128 per share in cash at the close of the merger. Monsanto shares rose 24-cents to $104.83 in trading this morning.
Monsanto shareholders also voted to approve a proposal that would give compensation to the Company’s named executive officers in connection with the merger. The voting still has to be filed with the Security and Exchange Commission (SEC). Monsanto said the final approval for the merger should take place by the end of 2017, according to CTV News/url].
[url=http://stlouis.cbslocal.com/2016/12/13/monsanto-approves-merger-with-bayer/ t=_blank]CBS St. Louis is reporting that Hugh Grant, Monsanto Chairman and Chief Executive Officer, said of the vote: “We are pleased we received such strong support from our shareowners.” Calling it an “important milestone for the two companies,” Grant said, “We can do even more together to benefit growers around the world and to help address broad global challenges like climate change and food scarcity.”
Werner Baumann, CEO of Bayer AG, echoed Grant’s statement, saying: “Together, Bayer and Monsanto will be able to offer the new, innovative solutions that our customers need. We look forward to completing the transaction and working closely with Monsanto to ensure a successful integration.”
German news agency, Deutsche Welle reports the merger will be closely scrutinized by the regulators who might still demand some asset sales. Bernstein Research analysts are saying the deal only has a 50 percent chance of gaining SEC approval, while investors are thinking the deal has a 70 percent chance of being given the green light.
“We believe political push-back to this deal, ranging from farmer dissatisfaction with all their suppliers consolidating in the face of low farm net incomes to dissatisfaction with Monsanto leaving the United States, could provide significant delays and complications,” Bernstein Research wrote in a research note.
Further to the point, Jim Nelson at Euro Pacific Capital said there is a very good chance the deal will be rejected on antitrust grounds. Speaking about all the mergers globally that have created monopolies, Nelson said, “There has been a lot of consolidation recently, so regulators will be very reluctant to approve the deal.”
