Bayer announced that it will drop the Monsanto Company (NYSE:MON) name once it completes its acquisition of the company later this week.
The latter has agreed to be acquired by the former, a deal which is slated to be completed on Thursday, June 7. Once the deal is complete, all of Monsanto’s assets will be sold under the Bayer banner as the German company is dropping the name of the American pesticide seller.
While many would hope that the Monsanto name is being dropped because of the fact that it’s associated with pesticide that is harmful to the environment, Bayer maintains that this has nothing to do with the decision. “Bayer will remain the company name,” Bayer said in a statement. ”
Monsanto will no longer be a company name. The acquired products will retain their brand names and become part of the Bayer portfolio.” The German company had been considering getting rid of the name for a while now, but the announcement was not official until Monday.
The acquisition has its origins in September 2016, when Bayer agreed to buy Monsanto for $66 billion to combat sluggish crop prices. The deal received U.S antitrust approval in May as the companies agreed to sell off $9 billion in assets to maintain the competition within the industry.
“We aim to deepen our dialogue with society,” Bayer chairman Werner Baumann said in a statement. “We will listen to our critics and work together where we find common ground. Agriculture is too important to allow ideological differences to bring progress to a standstill.”
“We have to talk to each other. We need to listen to each other. It’s the only way to build bridges.”
MON shares were edging slightly higher Monday upon the news, gaining more than 0.2%.