Bayer officially wants to expand its CropSciences business and become the world’s largest producer of seeds, pesticides and agricultural chemicals, bidding $62 billion for Monsanto.

Bayer announced Monday that it presented an all cash offer to Missouri-based Monsanto’s board of directors on May 10, with hopes that it would soon become the largest player in seed production.

The deal is valued at $122 per share for all of Monsanto’s common stock.

“The acquisition of Monsanto would be a compelling opportunity to create a global agriculture leader, while reinforcing Bayer as a Life Science company with a deepened position in a long-term growth industry,” the company said in a statement.

Bayer expects annual savings of around $1.5 billion after year three plus additional integrated offer benefits in future years.

“We have long respected Monsanto’s business and share their vision to create an integrated business that we believe is capable of generating substantial value for both companies’ shareholders,” Werner Baumann, CEO of Bayer AG, said in a statement.

Last year, Monsanto attempted to buy Swiss seed/chemical giant Syngenta in a move that would have given that combined company control of 40% of the U.S. pesticide market. However, Syngenta balked at the Monsanto offer before subsequently agreeing to sell itself for $43 billion to China National Chemical Corp.

Bayer and Monsanto also face competition from Dow and DuPont, who agreed to a massive $130 billion merger in Dec. 2015.

 

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