When the deal turns bad

When German pharmaceutical giant Bayer announced its intention to acquire controversial US agribusiness Monsanto in 2016 it was described by environmentalists as a “marriage made in hell”.

It wasn’t just the activists who have campaigned against dangerous pesticides and unwanted genetically modified crops for decades who were unhappy though- some financial analysts, market commentators and even shareholders of the two companies could not entertain the idea of the two hooking up.

Three years on, the regulatory hurdles to the $63bn merger have been overcome and executives of both companies are in full integration mode. But even now, perhaps especially now the deal has been inked, they are seriously up against it. The question remains: how can you put a conservative German pharma that is over 150 years old in what looks like a forced marriage with one of the most reviled companies in US corporate history?

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As is to be expected with mergers of this size,

... read more at: https://www.financialdirector.co.uk/2019/03/09/when-the-deal-turns-bad/