8-1 Discussion- Mergers in the News- The Good, the Bad, and the Ugly FIN 630.docx

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8-1 Discussion: Mergers in the News: The Good, the Bad, and the UglyThe parties involved were Bayer and Monsanto. Bayer is a German pharmaceutical and chemical company while Monsanto is American agrochemical and agricultural biotechnology corporation. In September 2016, Monsanto agreed to be acquired by Bayer for US$66 billion(Varinsky, 2018).The move was done to boost agriculture research and innovation (Varinsky, 2018). The deal was approved by the European Union on March 21, 2018, and approved in the United States on May 29, 2018 (Varinsky, 2018). The sale closed on June 7, 2018; as a result, Bayer announced its intent to discontinue the Monsanto name, with the combined company operating solely under the Bayer brand (Varinsky, 2018).The deal was worth about US$66 billion. In order for the US Department of Justice to approve the merger deal, Bayer agreed to sell its seed and herbicide businesses to German chemical company BASF anddivest roughly $9 billion worth of assets and businesses.When Bayer acquired Monsanto, the stock price was US

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