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Drugs Take Backseat to Seeds at Bayer With Monsanto Acquisition

  • Health unit needs to do deals as top-seller faces competition
  • Bayer may lack cash, focus to keep scouting for new medicines
Bloomberg business news

Bayer, Monsanto CEOs on Getting Deal Done

In the wake of its $66 billion-acquisition of Monsanto Co., Bayer AG risks starving its lucrative drugs business of the resources it needs to grow.

Funded with a combination of debt and equity, the deal announced Wednesday will transform Bayer into the world’s biggest supplier of seeds and pesticides. It’ll also leave the German company with little scope for acquisitions to boost its most profitable business: pharmaceuticals. That could hamper the unit’s growth as patent expiry looms for its best-selling heart medicine.