<p>German drug giant Bayer said today it was in talks to acquire US agriculture group Monsanto, after weeks of speculation about a possible tie-up.<br /><br /></p>.<p>"Bayer executives recently met with executives of Monsanto to privately discuss a negotiated acquisition of Monsanto Company," the Leverkusen-based company said in a statement.<br /><br />"The proposed combination would reinforce Bayer as a global innovation-driven Life Science company with leadership positions in its core segments, and would create a leading integrated agriculture business."<br /><br />Bayer's statement, which said that discussions were still "preliminary", followed one issued late Wednesday by St. Louis, Missouri-based Monsanto.<br /><br />"In response to recent media reports, Monsanto Company disclosed that it has received an unsolicited, non-binding proposal from Bayer AG for a potential acquisition of Monsanto, subject to due diligence, regulatory approvals and other conditions," Monsanto said.<br /><br />Monsanto shares surged last week following reports it could receive a takeover bid from Bayer for USD 40 billion or more.<br /><br />Neither statement mentioned how much any proposed deal would be worth.<br /><br />Monsanto, a major manufacturer of agricultural seeds and herbicides, employs about 20,000 workers and is one of the world's leading biotechnology companies.<br /><br />"We produce seeds for fruits, vegetables and key crops -- such as corn, soybeans, and cotton -- that help farmers have better harvests while using water and other important resources more efficiently," the company said in its statement.<br /><br />Bayer, which employs around 117,000 workers, had global sales in fiscal year 2014 of 46.3 billion euros (USD 51.9 billion.<br /><br />Agricultural suppliers like Monsanto have been pressured by low commodity prices that have caused farmers to cut orders for supplies. In March, Monsanto slashed its earnings forecast for 2016.<br /><br />Sluggishness in the industry has also sparked deals such as a mega-merger between DuPont and Dow Chemical.<br /><br />Switzerland's Syngenta last year rejected an unsolicited offer from Monsanto, later agreeing to be bought by China National Chemical Corp for USD 43 billion. <br /><br /></p>
<p>German drug giant Bayer said today it was in talks to acquire US agriculture group Monsanto, after weeks of speculation about a possible tie-up.<br /><br /></p>.<p>"Bayer executives recently met with executives of Monsanto to privately discuss a negotiated acquisition of Monsanto Company," the Leverkusen-based company said in a statement.<br /><br />"The proposed combination would reinforce Bayer as a global innovation-driven Life Science company with leadership positions in its core segments, and would create a leading integrated agriculture business."<br /><br />Bayer's statement, which said that discussions were still "preliminary", followed one issued late Wednesday by St. Louis, Missouri-based Monsanto.<br /><br />"In response to recent media reports, Monsanto Company disclosed that it has received an unsolicited, non-binding proposal from Bayer AG for a potential acquisition of Monsanto, subject to due diligence, regulatory approvals and other conditions," Monsanto said.<br /><br />Monsanto shares surged last week following reports it could receive a takeover bid from Bayer for USD 40 billion or more.<br /><br />Neither statement mentioned how much any proposed deal would be worth.<br /><br />Monsanto, a major manufacturer of agricultural seeds and herbicides, employs about 20,000 workers and is one of the world's leading biotechnology companies.<br /><br />"We produce seeds for fruits, vegetables and key crops -- such as corn, soybeans, and cotton -- that help farmers have better harvests while using water and other important resources more efficiently," the company said in its statement.<br /><br />Bayer, which employs around 117,000 workers, had global sales in fiscal year 2014 of 46.3 billion euros (USD 51.9 billion.<br /><br />Agricultural suppliers like Monsanto have been pressured by low commodity prices that have caused farmers to cut orders for supplies. In March, Monsanto slashed its earnings forecast for 2016.<br /><br />Sluggishness in the industry has also sparked deals such as a mega-merger between DuPont and Dow Chemical.<br /><br />Switzerland's Syngenta last year rejected an unsolicited offer from Monsanto, later agreeing to be bought by China National Chemical Corp for USD 43 billion. <br /><br /></p>