German pharmaceutical and crops manufacturer Bayer AG BAYGn.DE said on Monday that its negotiations with Monsanto Co MON.N had advanced, and it was now willing to offer more than $65 billion to acquire the world’s largest seed company.
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Bayer in a statement said that it was prepared to offer $127.50 per share in connection with a negotiated deal, up from its previous offer of $125 per share.
Representatives for Monsanto had no immediate comment. There is no assurance parties will reach agreement, Bayer said.
Bayer’s farm business produces seeds as well as chemicals to combat weeds and insects, but it is better known for its healthcare products such as Aspirin and Alka-Seltzer.
The offer from Bayer marks a reversal of roles for the USA company. To that end, it had pursued the purchase of Syngenta AG on at least three separate occasions over the years.
In July, Bayer raised its earlier offer of $122 per share to $125 per share to put Monsanto under pressure to engage further. Bayer made its bid for Monsanto public in May, but the two companies have made little progress since in negotiating a deal. Analysts at Sanford C. Bernstein said the company may decide to sell if Bayer raises its offer to $135 a share.
Monsanto has risen 9% since the start of the year and closed on Friday at $107.44, making it worth just over $47bn. Meanwhile, DuPont Co and Dow Chemical Co plan to merge and then carve out a new crop-science unit.
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The higher offer comes amid a wave of mergers in the agriculture sector. GMO varieties of corn and soybeans now account for the majority of those crops in the U.S.
