Bayer makes offer to purchase Monsanto

UPDATE: Monsanto has rejected Bayer's takeover bid. For more information click here.

German drugs and chemicals group Bayer has made an unsolicited takeover proposal to U.S. seeds company Monsanto, aiming to create the world's biggest agricultural supplier and take advantage of converging pesticides and seeds markets.

Monsanto disclosed the approach on Wednesday before Bayer confirmed its move, though neither released proposed terms.

The $42 billion market capitalization of Monsanto means that the deal would be likely to eclipse ChemChina's planned acquisition of Swiss agrichemicals company Syngenta -- a target Monsanto itself pursued last year — and could face U.S. antitrust hurdles.

For more information, click here.