The U.S. Department of Justice has approved the union between Monsanto Co. (MON, Financial) and Bayer (BAYA).
U.S. regulators had feared that consumers and farmers would be harmed by the merger. But the two companies have allayed those concerns, Bloomberg reports. The U.S. antitrust division has imposed conditions regarding asset sales in order to keep open competive channels. In fact, the agreement between Bayer and Monsanto with the U.S. authorities involves the largest sale of assets ever requested in a merger case.
The $62.5 billion deal is just one step from its final conclusion. The companies are waiting for the approval from the Canadian and Mexican antitrust authorities.
On the heels of U.S. approval, Monsanto Company (MON, Financial) closed 0.72% up to $127.41 per share on the New York Stock Exchange on May 29.
The stock is trading above the 200, 100 and 50-SMA lines and the share price is only 24 cents far from the 52-week high of $127.65 per share. The 52-week low is $114.19 per share.
Monsanto has a market capitalization of $56.22 billion, a price-book ratio of 7.23 times versus an industry median of 1.89 times, a price-sales ratio of 3.89 times versus an industry median of 1.39 times and a price-earnings ratio of 22.82 times versus an industry average of 22.82 times.
Monsanto has a forward dividend of $2.16 per share, yielding 1.72%. The forward price-earnings ratio is 20.37 times versus an industry median of 19.16 times.
According to GuruFocus, the share price is in between of the Peter Lynch Earnings Line (P/E = 15) of $83.7 and the Price at Med P/E without NRI (P/E = 25.54) of $142.5.
(Disclosure: I have no positions in any stock mentioned in this article.)
