Monsanto and Bayer have confirmed news reports that they are discussing a merger. In a statement issued Wednesday, Monsanto said its board of directors is reviewing “an unsolicited, non-binding proposal from Bayer AG for a potential acquisition” of the company, but would not comment further until after the board has completed that review.

 

Bayer, which is headquartered in Germany, followed today with its own statement, saying that executives from the two companies recently met privately to discuss a “negotiated acquisition of Monsanto Company” and that “the proposed combination … would create a leading integrated agriculture business.”

 

St. Louis-based Monsanto said “there is no assurance that any transaction will be entered into or consummated, or on what terms.”

 

However, the discussions between the two companies - which could create the world's biggest supplier of farm chemicals -- are certain to be watched closely in farm country, where many are already concerned about two other possible mergers

 

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