2026-09-23T19:32:29Z https://www.ideals.illinois.edu/oai-pmh

oai:www.ideals.illinois.edu:2142/121373 2023-12-13 col_2142_5131 col_2142_13851 com_2142_5130 com_2142_684 com_2142_397

Goldsmith, Peter M Paulson, Nicholas D Schnitkey, Gary D Blumthal, Meredith 2023-08 application/pdf en text Submission published under a 24 month embargo labeled 'U of I Access', the embargo will last until 2025-08-01 The student, Guillermo Bort, accepted the attached license on 2023-07-17 at 10:07. The student, Guillermo Bort, submitted this Thesis for approval on 2023-07-17 at 10:29. This Thesis was approved for publication on 2023-07-19 at 16:18. DSpace SAF Submission Ingestion Package generated from Vireo submission #19708 on 2023-12-04 at 17:18:50 The Monsanto - Bayer acquisition case, factors that influence M&A premiums, a teaching case study Bort, Guillermo Hernan 2023-07-19 M&a Premium Hubris Theory Agricultural Inputs Industry Factors Influencing M&a Premium During the past decade, the merger of Dow with Dupont/Pioneer, the acquisition of Syngenta by Chem-China, and the acquisition of Monsanto by Bayer have reshaped the global agricultural input sector, signaling the final stages of a long process of market concentration. Increasing complementarities among companies involved with seeds, biotechnology, crop protection chemicals, and biological products drove this process as agricultural production was increasingly viewed as a complex and integrated system. These large and complex M&As received intense media coverage, price premium being a major highlight of widespread attention. I examined the literature about what determines price premiums, the multiple strategic and financial factors in play when a large acquisition is decided and explored different approaches to understand what drives an acquisition decision and whether they create or destroy value for shareholders. I focused my study on the Monsanto acquisition by Bayer and created a case study with accompanying teaching notes to discuss the main factors contributing to an acquisition decision and determining acquisition premium. I identified three main sets of factors: a) macro factors: related to culture, industry trends, acquisition waves, R&D-focused investments and expectations of future technology developments; b) enterprise factors: connected with competitive strategy, firm size, firm ownership structure, mode of payment and financial performance; and c) managerial factors: where management ownership, principal-agent theory and hubris theory come into play. The Monsanto/Bayer case study created here presents a unique learning opportunity to discover the complex decision-making process of a large acquisition and exposes students to a holistic approach combining qualitative and quantitative elements to form a solid opinion about the drivers of a major M&A in agribusiness. Text eng https://hdl.handle.net/2142/121373 Copyright 2023 Guillermo Bort M.S. Thesis Agricultural Economics University of Illinois at Urbana-Champaign Agr & Consumer Economics