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Argent in the News

Is Monsanto sale a $66 billion deal or not?

26 September 2016

(St. Louis Business Journal) 

The difference is equity value versus enterprise value, said Ken Crawford, an analyst at Argent Capital Management in Clayton.

September 16, 2016 (Greg Edwards)

If you read a lot of news stories about Monsanto’s sale to Bayer AG, you might be confused about how big the deal is.

Many publications, including ours and USA Today, said it’s a $66 billion deal.

The Wall Street Journal said it is about a $56 or $57 billion deal, as did The New York Times.

What’s up?

The difference is equity value versus enterprise value, said Ken Crawford, an analyst at Argent Capital Management in Clayton.

The Bayer offer that sealed the deal is for $128 per Monsanto share. That’s about $56 or $57 billion in equity value. But Bayer also will be taking on about $10 billion in debt, and that’s a total of $66 billion or so in enterprise value, Crawford said.