Bayer AG Might Buy Monsanto

The German multinational chemical and pharmaceutical company Bayer AG is exploring a potential bid for US competitor Monsanto Co. in a deal that would create the world’s largest supplier of seeds and farm chemicals.

The German firm has held preliminary discussions internally and with advisers about buying Monsanto, which has a market value of about USD 43 billion, sources declared to Bloomberg.

Bayer, which is valued at about EUR 79 billion euros (USD 90 billion), has discussed how to finance a deal including potential asset sales. No final decision has been made and the Leverkusen-based company could decide against a bid or pursue other transactions with Monsanto, including joint ventures or asset sales, the people said.

For the moments, representatives for Bayer and Monsanto declined to comment.

Such a deal would face regulatory scrutiny amid an unprecedented wave of consolidation in the crop-chemicals industry.