Bayer Getting Rid Of Toxic Monsanto Name

(RTTNews) - Bayer of Germany, a leader in chemical and biological crop protection products, will finish the acquisition of U.S. modern seeds giant Monsanto this week and plans to drop the name Monsanto from the combined entity. All the acquired products will have Bayer's name only.

The $63 billion acquisition, in effect, will vanish the 117-year history of Monsanto, a pioneer in seeds, traits and genetic modification of seeds. Since early 1990s, Monsanto has been a target of anti-GMO activists who opposed genetically modified genes in seeds.

Bayer said it has received all the required approval from regulatory authorities and the acquisition would be completed on June 7. On a conditional approval U.S. Department of Justice permitted the integration of Monsanto upon the completion of divestment to BASF.

The acquisition would double the agriculture business of Bayer, with a special focus on health and nutrition.

Bayer said, "The acquisition is anticipated to generate significant value. We expect a positive contribution to core earnings per share starting in 2019. From 2021 onward, that contribution is expected to be double-digit percentage. Moreover, adjusted for divestment, we expect synergies to deliver annual contributions of 1.2 billion U.S. dollars to EBITDA before special items as of 2022."

Further Bayer said it expects a positive contribution to core earnings per share starting in 2019 and double-digit contribution from 2021 onward. As of 2022, Bayer projects net synergies to deliver annual contributions of $1.2 billion to EBITDA before special items.