Bayer has raised its all-cash offer to Monsanto shareholders to US$125 per share from $122.
Bayer said it has been in private talks with Monsanto and had received additional information that warranted a higher bid.
The company said it had “comprehensively addressed Monsanto’s questions concerning financing and regulatory matters and is prepared to make certain commitments to regulators, if required, to complete the proposed acquisition of Monsanto.”
Analysts described the bid increase as modest.
Bayer said it has lenders lined up for the entire transaction financing and has offered a $1.5 billion reverse antitrust break fee.
Read Also
Agri-business and farms front and centre for Alberta’s Open Farm Days
Open Farm Days continues to enjoy success in its 14th year running, as Alberta farms and agri-businesses were showcased to increase awareness on how food gets to the dinner plate.
“We are convinced that this transaction is the best opportunity available to provide Monsanto shareholders with highly attractive, immediate and certain value,” Bayer chief executive officer Werner Baumann said.
“Bayer is fully committed to pursuing this transaction.”
The revised offer represents a premium of 40 percent over Monsanto’s closing share price on May 9.
On July 13, the Bloomberg news service reported, quoting un-named sources, that Monsanto had approached BASF about buying its ag chemical businesses.
Earlier this year, Monsanto held talks with BASF and Bayer about possible deals after losing the battle for Syngenta to ChemChina, Bloomberg said.
Monsanto posted lower than expected third quarter profit and sales and said its full year earnings would be at the low end of its previous forecast of $4.40 to $5.50 a share.
The company said in its third quarter report issued in late June that it had net income of $717 million, down from $1.14 billion in the same quarter last year.
The company is struggling as it faces lower farmer spending amid weak crop prices.
