Bayer: Requirements met to start integration with Monsanto

The press service of the Bayer company reports that the integration of Monsanto into the Bayer Group can begin following the divestment by Bayer to BASF of certain Crop Science businesses.

"One of the requirements of the U.S. Department of Justice was that Bayer and Monsanto remain separate companies and continue to operate separately until completion of these divestments to BASF, and that has now taken place," the report said.

Bayer expects that the acquisition will already make a positive contribution to core earnings per share starting in 2019.

"From 2022, annual contributions of 1.2 billion U.S. dollars to EBITDA before special items are planned from synergies. Moreover, Bayer will further strengthen its commitment to sustainability," the company revealed.

The company also commented on the verdict of the harm of glyphosate, passed in California on August 10, 2018.

"The jury’s decision is at odds with the weight of scientific evidence, decades of real world experience and the conclusions of regulators around the world," the report points out.

As the case proceeds, Bayer is convinced that the court will find that Monsanto and glyphosate were not responsible for the plaintiff's illness.

Owing to the aforementioned requirements imposed by the U.S. Department of Justice, Bayer did not have access to detailed internal information at Monsanto.

"Today, however, Bayer also gains the ability to become actively involved in defense efforts in the glyphosate trials and any other legal disputes," the report affirms.

Reference: BASF has closed the acquisition of a range of businesses and assets from Bayer. The transaction marks its entry into seeds, non-selective herbicides, and nematicide seed treatments.