Bayer (BAYRY) is publicly disclosing the contents of its private proposal to acquire Monsanto (MON). Bayer has made an all-cash offer to acquire all of the issued and outstanding shares of common stock of Monsanto Company for $122 per share or an aggregate value of $62B. This offer, based on Bayer’s written proposal to Monsanto dated May 10, 2016, represents a substantial premium of 37% over Monsanto’s closing share price of $89.03 on May 9, 2016 – 36% over the three-month volume weighted average share price – 33% over the six-month volume weighted average share price – Last twelve months EBITDA multiple of 15.8x as of February 29, 2016.

The combination is expected to provide Bayer’s shareholders with accretion to core EPS by a mid-single-digit percentage in the first full year after closing and a double-digit percentage thereafter. Initially, Bayer expects annual earnings contributions from total synergies of approximately $1.5b after year three plus additional integrated offer benefits in future years.

Under the proposed transaction, the combined business would provide attractive opportunities for the employees of both companies and have its global Seeds & Traits and North American commercial headquarters in St. Louis, Missouri.