The German drug and chemical giant Bayer AG on Monday announced an all-cash $62 billion offer for Monsanto Co., a move that puts the fate of one of the St. Louis region’s top corporate headquarters and 5,300 local employees in question.
For many St. Louisans, the takeover bid conjures up memories of InBev’s $52 billion takeover of Anheuser-Busch in 2008, which led to significant job losses and a lower local profile.
Could a similar fate be in store for workers at Monsanto’s Creve Coeur headquarters and Chesterfield research campus?
Although Bayer executives vowed Monday that the companies’ combined seed business would remain based in St. Louis region, job losses would likely result as the company squeezed out redundancies.
Bayer said in a statement it expects “total synergies” of $1.5 billion a year if the deal is consummated. Marketing and research and development are two areas where synergies could be found, said Johannes Dietsch, Bayer chief financial officer.
The deal, however, is far from done. Monsanto said its board of directors is still reviewing the offer; some analysts and investors have expressed skepticism; antitrust issues could prove to be obstacles.
Read more: St. Louis Post-Dispatch