Monsanto (NYSE: MON) Receives $62 Billion All Cash Takeover Bid From Bayer

Controversial group Monsanto saw shares pop on Monday, after German pharmaceuticals giant Bayer placed an “all-cash” bid for the Missouri based agriculture powerhouse. Bayer’s offer of $122 per share adds up to a staggering $62 billion, or 55 billion euros.

The huge announcement comes just days after Monsanto revealed that it had received an unsolicited bid from Bayer.

The merger would not only create the world’s biggest supplier of seeds, pesticides, and genetically-modified crops, but Bayer believes expected synergies would boost annual earnings of around $1.5 billion just after three years.

The two companies together would account for around 28% of global sales of pesticides and herbicides, according to the Wall Street Journal.

Lower commodity prices and overall sluggishness in the industry have added increased pressure for agricultural suppliers as well as consolidation deals. Monsanto had just recently slashed its earnings forecast for 2016. While the US company describes itself as one of the world’s leading biotechnology companies, it had launched a major restructuring program in 2015, even announcing that it would cut 16% of its workforce by 2018.

Bayer, who has about 117,000 workers, had a record year for profits in 2015.

“The planned combination with Monsanto is such an extraordinary opportunity to create a global leader in the agricultural industry. Monsanto is a perfect match to our agricultural business,” said Bayer.

“If a deal is reached with Monsanto, until closing, Bayer and Monsanto would continue to operate as independent companies.”