Bayer confident of finalising Monsanto deal this year after winning Trump backing
German chemicals firm Bayer is confident of completing its takeover of US seeds company Monsanto this year after apparently winning blessing from US President Donald Trump.
Reporting the company’s 2016 results today, Bayer chief executive Werner Baumann said the company was making “good progress” with the deal.
Read more: You're the Bayer for us: Monsanto shareholders give nod to $66bn takeover
The companies revealed last month that they had had “a very productive meeting” with Trump when he was President-elect.
In a joint statement, Bayer and Monsanto also made commitments to jobs and research spending in the US. A spokesman for Trump said at the time that they had promised to keep 9,000 US jobs and add 3,000 new high-tech roles.
Bayer today reported a 1.5 per cent growth in group sales in 2016 to €46.8bn (£37.6bn) and earnings before interest, taxation, depreciation and amortisation (Ebitda) up 10.2 per cent to €11.3bn.
Read more: Biggest deal of 2016, $66bn Bayer-Monsanto tie-up, faces large hurdles
The German firm’s interest in Monsanto first emerged in May last year. Monsanto rejected two offers, for $62bn and then $64bn, over the summer of 2016 before accepting a $128 per share, $66bn, offer in September.
The German company said today:
Bayer and Monsanto are working closely with the authorities. Bayer remains confident of closing the transaction before the end of 2017.