Either way, Monsanto wins

Article Excerpt

In September 2016, Monsanto accepted a $128.00-a-share takeover offer from German chemical and pharmaceutical maker Bayer AG. The all-cash deal is worth $66 billion and includes Monsanto’s debt. Bayer hoped to complete the takeover by the end of 2017, but now expects it will close in early in 2018. That’s because European regulators plan to take a closer look at the deal. They’re concerned the combined company would unfairly dominate the seed and pesticide markets. If Bayer must cancel the takeover, it will pay Monsanto a $2.0 billion breakup fee. That’s equal to 4% of Monsanto’s $52.2 billion market cap (the total value of all shares outstanding). The company could then use that cash to buy back shares or increase its dividend. dividend…