Bayer’s operational business was hit by currency effects in the first quarter of 2018. Adjusted for currency and portfolio effects, the company generated an increase in sales in the first three months of the year, it reports.
“We have made good headway strategically and have made major progress with the proposed acquisition of Monsanto,”said Werner Baumann, Chairman of the Board of Management, when he presented the interim report on Thursday.
The European Commission and other regulators, including those in Brazil, China and Russia, have approved the transaction this year. This means that Bayer has now obtained two-thirds of the around 30 anti-trust approvals it seeks. The conditions imposed by the European Commission and other regulators include in particular the divestment by Bayer of various Crop Science businesses.
The company reached agreements to this effect with BASF in October 2017 and April 2018. The Monsanto acquisition remains subject to customary closing conditions, including receipt of required regulatory approvals. Bayer is working closely with the authorities around the world with the goal of closing the transaction in the second quarter of 2018.
In April 2018, investment company Temasek subscribed to 31 million new shares of Bayer, corresponding to around 3.6 percent of the increased capital stock, for total gross proceeds of 3 billion euros. The proceeds from this placement will be taken into account when determining the size of the share capital increase through a rights offering with subscription rights to existing shareholders to finance the acquisition of Monsanto.
