Monsanto, producer of seeds and Bayer AG, a German pharmaceutical company are in the process of executing a merger.
The following was published in the WSJ on December 13, 2016:
“The chief executive of U.S. seed giantMonsanto Co. remains confident in the company’s planned sale to German pharmaceutical conglomerate Bayer AG, which he said would help boost U.S. investment in agricultural technology.”
The article also stated, “Combining Monsanto’s prowess in engineering seeds with Bayer’s much broader pesticide portfolio will “intensify” the companies’ research and development operations, Mr. Grant said, benefiting farmers and adding jobs. “The resources will increase over time. This isn’t about skinnying down,” he said.
Please discuss: the type of merger proposed, and possible sources of synergy. You can feel free to look up additional information in the financial press.