BRIEF—Update on Bayer acquisition of Monsanto

German pharma and crop sciences major Bayer has launched a 6 billion ($7 billion) rights issue, a cornerstone of the financing package for its planned $62.5 billion takeover of agrichemical giant Monsanto, which was announced in 2016.

The cash call is smaller than initially envisaged because Monsanto reduced its debt during a lengthy antitrust review, while Bayer raised funds from selling down its stake in plastics maker Covestro and offloading assets to BASF, commented Reuters.

Deal set to complete June 7

Bayer also today announced that it plans to complete the acquisition of Monsanto on June, 7, following the receipt of all required approvals from regulatory authorities.

“The acquisition of Monsanto is a strategic milestone in strengthening our portfolio of leading businesses in health and nutrition. 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,” said Werner Baumann, chairman of the board of management of Bayer AG.