Bayer confirms interest in acquiring Monsanto

German pharma and crop sciences major Bayer (BAYN: DE) has confirmed its executives recently met with executives of Monsanto (NYSE: MON) to privately discuss a negotiated acquisition of Monsanto, a leading agrochemical and agricultural biotechnology business.

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.

According to the UK’s Financial Times, Bayer has proposed paying around $40 billion for the Monsanto business, making it the largest ever acquisition by a German company. Monsanto itself has been on a buying trek, but failed to acquire Swiss rival Syngenta, which got sold to ChemChina in a $44 billion transaction.

The news did not go down well with investors, with Bayer’s shares tumbling 8.2% to 88.51 euros, wiping around 6 billion euros ($6.73 billion) off Bayer’s market capitalization on Thursday.

This statement follows Monsanto's announcement on Thursday regarding an unsolicited proposal from Bayer. A further statement will be made as appropriate, the company said.