Bayer CEO defends planned acquisition of Monsanto

Bayer AG Chief Executive Werner Baumann Wednesday defended the company’s planned $57 billion acquisition of U.S. agrochemical group Monsanto Co. amid concerns the deal could face an uphill battle with regulatory authorities over antitrust issues. “This step is entirely logical,” Mr. Baumann said of the merger with Monsanto. “The two companies are a perfect fit and complement each other ideally.”  Mr. Baumann said the German pharmaceuticals and chemicals giant would submit its application to EU regulatory authorities in the first quarter of 2017 and to U.S. authorities by the end of this year. He reiterated that he expected the deal to close by the end of 2017.  Mr. Baumann’s remarks came as the company announced its earnings results for the third quarter of 2016. Bayer posted a 19% rise in net profit and raised its full year earnings guidance, boosted by continued uptake of its recently launched blockbuster drugs.  Net profit for the period ended Sept. 30 was €1.19 billion ($1.3 billion), compared with €999 million for the same period last year. The figure beat analysts’ forecasts of a €1.1 billion profit, according to a recent poll by The Wall Street Journal.  Bayer said it now expects to achieve a high-single-digit percentage increase in core earnings a share for 2016, up from its previous forecast of a mid-to-high-single-digit percentage improvement. The company also reiterated its sales outlook for the full year, saying it expects sales of between €46 billion and €47 billion.