Bayer Increases Offer to $65 Billion to Acquire Monsanto

German company Bayer is making its offer sweater with US$65 billion to win Monsanto.

In a report of Reuters, Bayer confirmed that advanced discussions with Monsanto already took place but guarantee for closing a deal has not yet been provided.

In May, Bayer bidded for the pesticides and global seeds giant for a price of US$122 a share but was considered "financially inadequate" causing Monsanto to decline. Two months later, the bidder increased the offer to US$125 a shared but was still rejected by the American company, BBC reported.

According to reports, Monsanto is still evaluating the German company and other parties' offer.

The Bayer-Monsanto union would be one of the biggest merger in the history. Two companies when combined will be the top agricultural supplier in the United States, Europe and Asia.

Currently, farm businesses under Bayer produce chemicals and weeds but the company is more popular with its pharmaceutical and healthcare products including the Alka-Seltzer and Aspirin. On the other hand, Monsanto is a major source of genetically modified crops such as soybeans, wheat, cotton, corn and sugarcane. Due to health hazards of GMOs, Monsanto continuously receives attacks from environmental activists.

Due to decrement of commodity prices, Monsanto and other crops-producing companies are put under pressure. This current hazard the agrochemical and agricultural company currently faces can be mitigated through Bayer's occupation. The purported merger can boost competitiveness of the companies not only in the U.S but also across the globe. However, farming groups contest the possible outcome of the union stating that it may result to higher prices and fewer options.

Likewise, some shareholders of Bayer do not agree with the union because of the presumption that it might induce expenses to the company's pharmaceutical business to widen its agricultural sector.

Current competitors in the market include Syngenta, DuPont and Dow Chemical.