Chemical and pharmaceutical giant Bayer AG might be making a move to acquire agrochemical company Monsanto, Bloomberg’s Aaron Kirchfeld, Ruth David, and Dinesh Nair report.
If an acquisition is on the horizon the companies would combine to create the largest farm-chemicals- and seeds-supplier in the world, according to the report.
Monsanto’s stock surged by as much as 20% in pre-market trading.
Monsanto has a market cap of about $40 billion
The company has considered a full merger and the possibility that Bayer may sell its crop-sciences business, according to Bloomberg.
There have been quite a few moves in the agrochemicals space in recent months.
The Chinese chemical giant ChemChina in February agreed to buy the Swiss seed-maker Syngenta for $43 billion. In December, Dow Chemical and DuPont announced a $130 billion deal.