Report
Seth Goldstein, CFA
EUR 101.80 For Business Accounts Only

We expect Bayer's acquisition of Monsanto to receive regulatory approval and close in 2018.

The European Commission announced it is pushing back the review deadline for the Monsanto-Bayer deal to early March 2018, roughly a month and a half after the previous deadline. Shares of Monsanto have slipped 4% to $117 per share since Oct. 13 when Bayer announced a transaction-related divestiture and now trade at a modest 9% discount to Bayer's all-cash take-out offer of $128. We think the recent selloff is likely due to investors assigning a lower probability that the deal will close. We cont...
Underlying
Monsanto Company

Monsanto, along with its subsidiaries, is a provider of agricultural products for farmers. The company has two business segments: Seeds and Genomics, and Agricultural Productivity. Through its Seeds and Genomics segment, the company produces seed brands, including DEKALB, Asgrow, Deltapine, Seminis and De Ruiter, and the company develops biotechnology traits that assist farmers in controlling insects and weeds. The company also provides other seed companies with technology and genetic material for their seed brands. Through its Agricultural Productivity segment, the company manufactures Roundup brand herbicides and other herbicides and provides lawn-and-garden herbicide products for the residential market.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Seth Goldstein, CFA

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