Monsanto has announced that shareowners of the company have approved the merger of Monsanto with Bayer Aktiengesellschaf (AG).

The proposed merger has not yet been notified officially to the European Commission’s Competition authority.

Under the terms of the merger agreement, Monsanto shareowners will receive $128/share in cash at the closing of the merger.

Hugh Grant, Monsanto Chairman and Chief Executive Officer said that the company is pleased to receive such strong support from its shareowners.

“This is an important milestone as we work to combine our two complementary companies and deliver on our shared vision for the future of agriculture.

“By bringing together our expertise and our resources to drive this shared vision, we can do even more together to benefit growers around the world and to help address broad global challenges like climate change and food scarcity.”

Meanwhile, Werner Baumann, CEO of Bayer AG, said that the acquisition of Monsanto is driven by its strong belief that this combination can help address the growing challenges facing farmers and the overall agriculture industry today and in the future.

Together, Bayer and Monsanto will be able to offer the new, innovative solutions that our customers need.

“We look forward to completing the transaction and working closely with Monsanto to ensure a successful integration.”

Based on a preliminary tabulation of the shareowner vote, approximately 99% of all votes cast, which represents approximately 75% of all outstanding shares on November 7, 2016, the record date for the special meeting, were voted in favour of the merger.

The transaction is subject to customary closing conditions, including the receipt of required regulatory approvals.

Bayer, with the support of Monsanto, has now submitted a number of filings, including the US Hart-Scott-Rodino Act filing. Closing is expected by the end of 2017.