German multinational Bayer has held preliminary talks with seed giant Monsanto to discuss a potential takeover.

In a statement released today (May 19), Bayer confirms executives recently met with Monsanto counterparts to 'privately discuss a negotiated acquisition of Monsanto Company.'

Bayer says the proposed combination would 'reinforce Bayer as a global innovation-driven Life Science company with leadership positions in its core segments, and would create a leading integrated agriculture business.'

Late on Wednesday, Monsanto also released a statement.

"In response to recent media reports, Monsanto Company (NYSE: MON) disclosed that is has received an unsolicited, non-binding proposal from Bayer AG for a potential acquisition of Monsanto, subject to due diligence, regulatory approval and other conditions," it says.

"The Board of Directors of Monsanto is reviewing the proposal, in consultation with its financial and legal advisors.

"Monsanto will have no further comment until its Board of Directors has completed its review. There is no assurance that any transaction will be entered into or consummated, or on what terms."

Last year Monsanto was pursuing a takeover of Syngenta (VTX: SYNN) but the Swiss entity rejected its $47 billion offer.

In February Syngenta announced its Board was in favor of a US$43 billion offer from ChemChina.

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