Bayer makes $62bn Monsanto bid

Pharmaceutical company Bayer has revealed that it is offering to buy Monsanto for $62 billion.

In a letter to Monsanto's chief executive Hugh Grant, Bayer outlined its plans to combine Monsanto’s seeds and crop genetics business with its own which it said would produce “a truly agriculture leader”.

Bayer’s chief executive Werner Baumann said the transaction "represents a compelling opportunity for Monsanto’s shareholders”.

“We have long respected Monsanto’s business and share their vision to create an integrated business that we believe is capable of generating substantial value for both companies’ shareholders,” Baumann added.

Bayer added that the combination would also benefit the companies from a geographical perspective, significantly expanding Bayer’s presence in the Americas and its position in Europe and Asia.