Bayer's Acquisition of Monsanto

Bayer's Acquisition of Monsanto
Case Code: BSTR565
Case Length: 15 Pages
Period: 2016-2018
Pub Date: 2019
Teaching Note: Available
Price: Rs.400
Organization: Bayer AG
Industry: Agrochemical
Countries: Americas and Europe
Themes: Business Strategy, Merger & Acquisition
Bayer's Acquisition of Monsanto
Abstract Case Intro 1 Case Intro 2 Excerpts

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.

Issues

The case is structured to achieve the following teaching 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

Contents

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

Buy this case study (Please select any one of the payment options)

Price: Rs.400
Price: Rs.400
PayPal (9 USD)

Custom Search