In May, Bayer AG made an offer of US$122 per share, which has now been increase to US$125.
A Bayer spokesperson in South Africa declined to comment on the proposed takeover.
“More role-players create healthy competition, which is good for producers. Fewer competitors are normally not good for producers. In some instances such transactions could lead to innovation in technologies that are combined.
Because of this seed prices would probably not be influenced,” Corné Louw, senior economist for inputs at Grain SA said.
Monsanto is a major player in seed and herbicide sectors, while Bayer, an agrochemical market leader has only recently entered the seed market, Louw said.
“Bayer AG comprehensively addressed Monsanto’s questions concerning financing and regulatory matters and is prepared to make certain commitments to regulators, if required, to complete the proposed acquisition of Monsanto,” a Bayer AG press release said.
It is expected that the deal will be financed by the Bank of America, Credit Suisse, Goldman Sachs, HSBC, and JP Morgan, the release said.