Bayer Crop at new high

Bayer Crop Science hit a new 52-week high today at Rs.4380 and Monsanto went on to an intra day high at Rs.2728.90, close to its 52-week high of Rs.2744.85.

In this otherwise lackluster market, these two agri stocks are shining bright because of the obvious deal - German chemical and pharma giant Bayer AG and global biotech major Monsanto on Wednesday announced that they signed a definitive merger agreement in an all-cash transaction.

Ending months of wrangling, Bayer finally clinched a $66 billion takeover of Monsanto, marking the largest all-cash deal on record.

If the deal closes, it will create a company commanding more than a quarter of the combined world market for seeds and pesticides in the fast-consolidating farm supplies industry.

The transaction includes a $2-billion break-up fee that Bayer will pay to Monsanto should it fail to get regulatory clearance. Bayer expects the deal to close by the end of 2017. Bayer was offering a 44-percent premium to Monsanto's share price on May 9, the day before it made its first written proposal.