German drugs and chemicals group Bayer has made an unsolicited takeover proposal to U.S. seeds company Monsanto, aiming to create the world's biggest agricultural supplier and take advantage of converging pesticides and seeds markets.
Monsanto disclosed the approach on Wednesday before Bayer confirmed its move, though neither released proposed terms.
The $42 billion market capitalization of Monsanto means that the deal would be likely to eclipse ChemChina's planned acquisition of Swiss agrichemicals company Syngenta -- a target Monsanto itself pursued last year -- and could face U.S. antitrust hurdles.
Bayer is ranked No. 2 in crop chemicals, with an 18 percent market share, just behind Syngenta on 19 percent, industry data shows.
Monsanto is the leader in seeds, with a 26 percent market share, followed by DuPont with 21 percent. DuPont agreed last year to merge with Dow Chemical. Any Bayer-Monsanto deal would further reduce the number of major players in seeds and pesticides to four from six.
This needs to NOT happen. Bayer is awful and if they control the food supply then we're all in danger. I'm not here for sterile crops soaked in dangerous pesticides. Bayer is largely responsible for the bee population dying.
