Bayer, Monsanto Give No Clues on How the $66 Billion Merge Will Impact RTP Jobs

Bayer, Monsanto Give No Clues on How the $66 Billion Merge Will Impact RTP Jobs September 15, 2016
By Alex Keown, BioSpace.com Breaking News Staff

RALEIGH, N.C. – As Bayer and Monsanto move toward finalizing a deal that will see the combined companies control 25 percent of the global seed market, questions abound for what the merger will mean for the approximately 1,000 people the German company employs in the Triangle area.

During a conference call following Bayer’s Wednesday announcement it was acquiring the St. Louis, Mo.-based Monsanto for $66 billion, reporters for the Triangle Business Journal noted there was little mention about Bayer’s and Monsanto’s facilities in the area, while a majority of the discussion was what the merger will mean for St. Louis. Bayer currently operates its North American seed business from the Research Triangle Park near Raleigh, but that business is expected to shift to St. Louis. During the conference call, Werner Bauman, chief executive officer of Bayer, said the company will continue to maintain and important presence in North Carolina, but what that means in terms of investments and employment remains to be seen, the Journal said.

In its announcement of the agreement with Monsanto, Bayer stressed that North Carolina would benefit, but did not provide specifics.

In October 2015, Monsanto announced plans to shutter a facility in Durham by the end of 2016. That site employs about 75 people, the Journal reported last year. When that site closes, Monsanto will no longer have a presence in the RTP area, except through a partnership with Novozymes that centers on an automated greenhouse, the Journal said. Bayer, on the other hand, has steadily been investing in North Carolina, including a new $35 million crop science laboratory. Over the past several years, Bayer has invested $200 million into its RTP facilities, the Journal reported. Local agribusiness officials told the Journal they remain confident that Bayer would continue to keep the Research Triangle Park investments going.

The Bayer and Monsanto combination will bring together Monsanto’s Seeds & Traits and Climate Corporation business with Bayer’s crop protection line. The combined companies are expected to have an annual research and development budget of $2.5 billion.

Bayer and Monsanto finally came to terms on a deal after Monsanto rebuffed several attempts. Under terms of the deal Germany-based Bayer, best known for inventing aspirin, but which also has a seed business, will acquire Monsanto shares for $128. However, Bayer said that deal will be financed through a combination of debt and equity. Bayer said it has about 19 billion in equity, with the remaining $57 billion in financing. The final price is 44 percent higher than its initial offering, which was delivered back in May.

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