The drug and chemical company Bayer of Germany made a bid to acquire seed giant Monsanto, which said Wednesday evening it would review the proposal.
The unsolicited proposal has given rise to the possibility of a pesticides and seed behemoth that could bring in more than $67 billion annually, the New York Times reports. The acquisition could raise difficulties with antitrust regulators in the U.S., given both companies’ business in soybeans, canola and cotton.
Rumors about the offer have circulated over the past few weeks, with Monsanto and Bayer confirming them in short statements after Wednesday evening. Monsanto did not comment on the proposal itself, while Bayer said, “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.”
Monsanto’s current market capitalization is $42 million, and the $90 billion Bayer would likely pay more for the acquisition.