Bayer cuts Monsanto synergy target to $1.2 billion due to divestments

BONN (Reuters) - Bayer <BAYGn.DE> said that combining with takeover target Monsanto <MON.N> will have positive synergy effects of about $1.2 billion (898 million pounds) on core earnings, less than the $1.5 billion initially targeted because more divestments were needed to get antitrust approval.

The German drugs and pesticides maker, which is holding its annual shareholder meeting on Friday, said in a statement that the targeted synergies will have their full effect on annual adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) from 2022.

Bayer Chief Executive Werner Baumann said he expects the transaction to be closed in the near future.

(Reporting by Patricia Weiss; Writing by Ludwig Burger)