A future combined Bayer and Monsanto expects to spend about $16 billion on research and development over the next six years with at least half of the investment made in the United States, the two companies said in a statement on Tuesday.
The statement came after a spokesman for President-elect Donald Trump said Germany’s Bayer had pledged to boost its investments in the United States as part of its deal to buy Creve Coeur-based Monsanto, investing $8 billion in R&D.
The companies’ statement said: “This is an investment in innovation and people that will create several thousand new high-tech, well-paying jobs after integration is complete.”
Trump’s spokesman had said drugs and pesticides maker Bayer had promised to maintain its more than 9,000 U.S. jobs and add 3,000 new U.S. high-tech positions.
Depending how it’s broken down, the $16 billion outlay over six years could represent an increase from Monsanto’s current spending levels of $1.5 billion annually on research and development. A Monsanto spokesperson said that it remains to be seen how much each company would contribute to that total because they have not integrated yet.
It is also unclear at this time how much of the money would be spent in the St. Louis area, where Monsanto’s research and development resources are headquartered. Since 2013, the company has committed $400 million to improving and expanding facilities at its Chesterfield Research Center.
Monsanto agreed to Bayer’s $66-billion buyout offer in September. The companies hope to complete the merger, which still needs approval from antitrust regulators, by late 2017.
Reuters contributed to this report.