Leverkusen-based Bayer has announced that is looking to raise a final $7bn in fresh capital in order to finance the company’s $63bn takeover of US agrochemicals giant Monsanto.
The news comes after Bayer last week won US approval for the takeover, with the merger set to create the world’s largest seeds and pesticides manufacturing company, boasting of annual sales of approximately $23.5bn.
“The acquisition of Monsanto is a strategic milestone in strengthening our portfolio of leading businesses in health and nutrition,” said Werner Baumann, Chairman of the Board of Management of Bayer AG.
“We will double the size of our agriculture business and create a leading innovation engine in agriculture, positioning us to better serve our customers and unlock the long-term growth potential in the sector.”
The company is aiming to secure these new funds as the agreements previously signed in September 2016 stipulate that after 14 June Monsanto could withdraw from the deal and seek a higher price.
With this in mind, the deal is expected to conclude 7 June.