Germany’s Bayer AG may be considering a bid for U.S. seed company Monsanto in a deal that could be worth as much as $65 billion according to some estimates. The deal would pair Monsanto, which is the world’s largest seed company, with drug maker Bayer’s growing seed and crop protection portfolio, according to a Bloomberg report. Chemical company BASF is also reportedly considering a takeover of Monsanto as well.
This acquisition could approach the value of the deal inked by Dupont and Dow Chemical Company when they combined into a $130 billion company. The bid for Monsanto would be the most recent in the wave of chemical and agribusiness consolidation. China National Chemical in February acquired Switzerland-based Syngenta for $43 billion.
Bayer, best known as a pharmaceutical company, grew in May 2014 by acquiring competitor Merck’s consumer business for $14.2 billion. Any deal between Bayer and Monsanto would raise U.S. antitrust concerns because of the overall in the seeds business, particularly in soybeans, cotton, and canola, two antitrust experts said.
Bloomberg reported that Bayer had preliminary internal discussions and talks with advisers about a bid for Monsanto. However, no decision has been made yet. Monsanto, Bayer AG, and BASF have not commented publicly on a potential merger.
