German drug and chemicals-maker Bayer has made a takeover bid for agricultural giant Monsanto in a deal that could create the world’s biggest supplier of seeds and pesticides. Monsanto is known as a specialist in genetically modified crops.
The offer comes amid a wave of consolidation in the industry, with rivals Dow Chemical, DuPont and Syngenta all entering mergers recently. However, any tie-up is likely to depend on regulators’ competition concerns.
“There is no assurance that any transaction will be entered into or consummated, or on what terms,” Monsanto said in a statement. It added there would be “no further comment” until the board of directors completed its review of the proposal.
Bayer confirmed the talks saying it “recently met with executives of Monsanto to privately discuss a negotiated acquisition” with the goal of creating “a leading integrated agriculture business.”