Bayer confirms takeover talks with Monsanto

Shares in Bayer tumbled on Thursday after the German pharmaceuticals group confirmed it was in takeover talks with US seed giant Monsanto.

Late on Wednesday, Monsanto responded to recent media speculation by confirming it had received an unsolicited, non-binding offer from Bayer for a potential acquisition.

Monsanto said its board of directors was reviewing the proposal, in consultation with its financial and legal advisors, adding that there was no guarantee a deal would be done.

Following this statement, Bayer said its executives recently met with executives at Monsanto to privately discuss a negotiated acquisition of Monsanto.

“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,” it said.

At 1000 BST, Bayer shares were down 7.7% to €88.96, while Monsanto was up nearly 9% in pre-market trade.