FRANKFURT: German pharmaceuticals giant Bayer and US agricultural group Monsanto said Thursday they are in talks on a possible merger to create a global player in pesticides and seeds, after weeks of speculation about a possible tie-up.
"Bayer executives recently met with executives of Monsanto to privately discuss a negotiated acquisition of Monsanto Company," the Leverkusen-based company said in a statement.
Monsanto, for its part, "disclosed ... in response to recent media reports that it has received an unsolicited, non-binding proposal from Bayer AG for a potential acquisition of Monsanto, subject to due diligence, regulatory approvals and other conditions."
But both sides emphasised that the talks were still only exploratory at this stage.
And neither mentioned how much any proposed deal would be worth.
"There is no assurance that any transaction will be entered into or consummated, or on what terms," Monsanto said, while Bayer insisted the talks were still only "preliminary" and "a further statement will be made as appropriate."
A combination would create a new giant in the seeds and pesticides sectors.
Agricultural suppliers like Monsanto have been pressured by low commodity prices that have caused farmers to cut orders for supplies. In March, Monsanto slashed its earnings forecast for 2016.
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