BUS 478

WMX 4387  J. Sheppard           email: sheppard@sfu.ca              Research   

 

Exercise D:   The Bayer Monsanto Merger Headache

 

Why would anyone buy a company who, at one time or another, made PCBs, the

insecticide DDT, Agent Orange, the herbicide glyphosate, recombinant bovine

growth hormone, and the never-introduced terminator technology for seeds?

Group

Focus

Questions

A or 1

Accounting

Where is the accounting failure in Bayer’s purchase of Monsanto?

Where did the accountants mess up?

B or 2

Finance

Did Bayer overpay on this deal? If so, by how much did they overpay?

What would you have done differently (aside from not doing the deal)?

C or 3

Human Resource Management

Are these two corporate cultures compatible?

How would you get them to work together?

D or 4

International Business

Are these two corporate cultures compatible?

Why was Bayer blindsided by their legal exposure regarding glyphosates?

E or 5

Operations Management

What Operations does Monsanto have that should have been a red flag to anyone thinking of acquiring the company?

F or 6

Marketing

How does Bayer, a well-respected pharmaceutical maker, avoid sullying its reputation because it bought Monsanto?

G or 7

Strategic Analysis

What is the logic behind buying Monsanto?

What businesses, at this point, would you recommend divesting and/or buying?