Bayer AG has raised its offer for Monsanto to $65 billion (£48.5 billion) to create seeds and chemical giant.
The chemical and pharmaceuticals company said in a statement that it had, for a second time, raised its offer for Monsanto saying it ’would be prepared’ to pay $127.50 (£95) per share.
This follows an initial cash offer of $62 billion (£46bn) for the company in May 2016.
Bayer said that it was now ’in advanced negotiations with Monsanto’, adding that ’key terms and conditions have not yet been agreed’.
In a separate statement, Monsanto, flagging the upgraded $127.50-per-share offer, ’confirmed it has been engaged in constructive negotiations with Bayer’.
Combining Bayer and Monsanto would create the world’s biggest agricultural supplier and be a market leader in the US, Europe and Asia.