Bayer signs deal to acquire Monsanto for $66 billion

The deal is subject to approval by Monsanto shareholders and anti-trust regulators

FILE - In this May 23, 2016, file picture the Bayer AG corporate logo is displayed on a building of the German drug and chemicals company in Berlin, Germany. German drug and farm chemical company Bayer AG said it has signed a deal Wednesday, Sept. 14, 2016, to acquire seed and weed-killer company Monsanto for about $66 billion in cash.
FILE - In this May 23, 2016, file picture the Bayer AG corporate logo is displayed on a building of the German drug and chemicals company in Berlin, Germany. German drug and farm chemical company Bayer AG said it has signed a deal Wednesday, Sept. 14, 2016, to acquire seed and weed-killer company Monsanto for about $66 billion in cash. (AP Photo/Markus Schreiber)

FRANKFURT, Germany (AP) – German drug and farm chemical company Bayer AG says it has signed a deal to acquire seed and weed-killer company Monsanto for $66 billion in cash.

Bayer says it is paying Monsanto shareholders $128 per share, which represents a 44 percent premium over Monsanto’s closing price on May 9, the day before a proposed deal was announced.

The deal is subject to approval by Monsanto shareholders and anti-trust regulators.

Bayer said Wednesday the transaction brings together two different but complementary companies. Bayer makes a wide range of crop protection chemicals, while Monsanto is known for its seeds business.

Leverkusen-based Bayer said the merged companies’ agriculture business would have its seeds business and North American business headquarters in St. Louis, Missouri, where Monsanto is currently based.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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