Abstract

The case discusses the merger deal between Bayer and Monsanto. It describes how the merger led to the creation of a global leader in the agrochemical industry. It also covers the various issues that the deal had to grapple with including Monsanto’s negative image and the possibility of a highly concentrated market. The case also talks about how Bayer will benefit from Monsanto’s expertise in the seed market. Soon after the merger, the combined entity decided to concentrate on R&D and digital farming tools to retain its global leadership. The case then covers the challenges before Bayer including repayment of a high amount of debt and cultural integration with Monsanto.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• To evaluate the impact of mega-mergers in a concentrated market.
• To understand the importance of cultural integration in mergers.
• To understand how synergies become a strong rationale for mergers.
• To analyze the impact of mergers on various stakeholders of the society.
• To examine rebuilding strategies after the mega-merger.

Keywords

Cultures issues; Synergies; Concentrated market; Mergers and Acquisitions; Vertical merger; Challenges in M&A Rebranding strategies; Developing Business and Acquisition Plans; Bayer; Monsanto; Financing M&A