Bayer Shows Strong Performance – Acquisition of Monsanto Agreed
- Group sales increase to €11.3 billion (Fx & portfolio adj.: +3.5%)
- Pharmaceuticals sustains very good business development
- Moderate increase in sales at Consumer Health
- Crop Science successful in a persistently difficult market environment
- EBITDA before special items increased to €2.7 billion (+6.0%)
- Net income €1.2 billion (+18.8%)
- Core earnings per share €1.73 (+2.4%)
- Forecast for core earnings per share raised
- Agreed acquisition of Monsanto creates a global leader in agriculture
The Bayer Group remained on a path of growth in the third quarter of 2016. Sales increased by 3.5% (Fx & portfolio adj.) to €11.3 billion and EBITDA before special items by 6.0% to €2.7 billion. In the Life Science businesses, we achieved encouraging sales and earnings growth overall. Pharmaceuticals once again registered a very positive business performance. Our recently launched products continued their strong development. Consumer Health increased sales but EBITDA before special items was below the prior-year level. The operating performance of Crop Science remained steady year on year in a persistently difficult market environment. Animal Health raised sales and earnings. Covestro registered slight growth in sales and a substantial increase in EBITDA before special items.
Bayer reached a major milestone in its history on September 14, 2016, with the signing of a binding agreement to acquire Monsanto Company, headquartered in St. Louis, Missouri, United States, for US$128 per share, representing a transaction value of around US$66 billion. The agreed acquisition reinforces our leadership position as a Life Science company and is a major strategic step in strengthening our Crop Science Division. The transaction is subject to customary closing conditions, including approval of the merger agreement by a majority of Monsanto’s stockholders and receipt of required approvals from the relevant antitrust and other authorities. We expect closing by the end of 2017.