Bayer confirms $66bn Monsanto takeover
Keep in mind that in today's global environment whenever a merger is proposed it has to go through alot of government scrutiny.  Not just in the US, but also with the EU and China.<p>See the Haliburton/Baker Hughes merger that was blown up by the US government.<p>From a merger arbitrage perspective this has been a very interesting deal.  This is the 4th proposal Bayer has made for Monsanto and with an all cash offer this might be enough, again assuming government approval.<p>They've went from an original offer of $122 to a final offer of $128/share.  And the deal includes a breakup fee of $2 Billion for Monsanto if the deal falls through.<p>Monsanto has played this very well but the $128/share offer represents a 21% bump from yesterday's close, which is a bit concerning.  With the other offers that have already been presented such a large premium means the market believes that there is a decent chance that this deal doesn't go through, now most likely due to government interference.<p>The typical remedy for governments who object to mergers is to have a company sell of a division or twp to show that the new company won't be a defacto monopoly.<p>Unfortunately in this case there is very little overlap between the two companies.  This means that there isn't really anything for Bayer or Monsanto to sell off here.<p>The newly combined company will own the agricultural space, with a seeds and chemicals integrated vertical that would impress Apple.