In a statement issued on Monday, German agribusiness giant Bayer has made an offer of $62bn to acquire US-based rival Monsanto. Bayer announced last week that it had recently met the executives of Monsanto to privately discuss a negotiated acquisition.

The two companies compete globally on farm inputs such as seed and pesticides, and employ 137,000 people between them.

“We have long respected Monsanto’s business and share its vision to create an integrated business that we believe is capable of generating substantial value for both companies’ shareholders,” said Werner Baumann, CEO of Bayer. “Together, we would draw on the collective expertise of both companies to build a leading agriculture player with exceptional innovation capabilities to the benefit of farmers, consumers, our employees and the communities in which we operate.”

Benefits

Bayer had annual sales of €46.3bn last year, compared with $15bn (€13.4bn) for Monsanto. Monsanto shares currently have a market value of $42bn (€37.4bn), according to Bloomberg.

The acquisition would significantly expand Bayer’s long-standing presence in the Americas and its position in Europe and Asia/Pacific. According to Bayer, customers of both companies would benefit from the broad product portfolio and the deep R&D pipeline.

Bayer confirms offer to take over Monsanto

Bayer offers $62bn to acquire Monsanto

Bayer says that the combined business would benefit from Monsanto’s leadership in Seeds & Traits and Bayer’s broad Crop Protection product line across a comprehensive range of crops.