Bayer announces Rs 4.12 lakh crore bid for Monsanto

German drugs and chemicals group Bayer announced an offer to buy US seeds company Monsanto for $122 per share in cash, or a total value of $62 billion (nearly Rs 4.12 lakh crore), to create the world's biggest agricultural supplier.

In a statement on Monday, Bayer said that the offer represented a 37% premium over the closing price of Monsanto shares on May 9, before rumours of a planned bid emerged.

However, earlier this week Monsanto had disclosed that Bayer had made an unsolicited takeover offer for the group, triggering an investor backlash in which one of the German pesticides and drugs company's major shareholders called the move "arrogant empire-building".

Bayer's offer values Monsanto at 15.8 times its 12-month earnings before interest, tax, depreciation and amortization (EBITDA) as of February 29.

Bayer expects annual earnings contributions from synergies of around $1.5 billion after three years, plus additional future benefits from integrated offerings.