Bayer signs deal to acquire Monsanto for $66 billion

FILE - This Monday, Aug. 31, 2015, file photo, shows the Monsanto logo at the Farm Progress Show in Decatur, Ill. Monsanto on Wednesday, Jan. 6, 2016, said it swung to a $253-million loss in the first fiscal quarter, amid foreign currency pressures and falling sales of its biotech-enhanced corn seeds. (AP Photo/Seth Perlman, File)
FILE - This Monday, Aug. 31, 2015, file photo, shows the Monsanto logo at the Farm Progress Show in Decatur, Ill. Monsanto on Wednesday, Jan. 6, 2016, said it swung to a $253-million loss in the first fiscal quarter, amid foreign currency pressures and falling sales of its biotech-enhanced corn seeds. (AP Photo/Seth Perlman, File)

FRANKFURT, Germany (AP) – German drug and farm chemical company Bayer AG says it has signed a deal to acquire seed and weed-killer company Monsanto for $66 billion in cash.

Bayer says it is paying Monsanto shareholders $128 per share, which represents a 44 percent premium over Monsanto’s closing price on May 9, the day before a proposed deal was announced.

The deal is subject to approval by Monsanto shareholders and anti-trust regulators.

Bayer said Wednesday the transaction brings together two different but complementary companies. Bayer makes a wide range of crop protection chemicals, while Monsanto is known for its seeds business.

Leverkusen-based Bayer said the merged companies’ agriculture business would have its seeds business and North American business headquarters in St. Louis, Missouri, where Monsanto is currently based.

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