German chemicals giant Bayer said Monday it had offered $62 billion for US agriculture group Monsanto as it seeks to create the world's biggest supplier of seeds, pesticides and genetically-modified crops.

In the biggest takeover ever attempted by a German company, Bayer said it made an offer for the American giant at $122 per share in cash, or a total of $62 billion (55 billion euros).

The move spells a public relations risk for Bayer, especially in Germany, where popular scepticism is high of GM crops and the practice of patenting plant varieties, and where controversy has flared about the health risks of pesticide glyphosate which Monsato markets as Roundup.

Leverkusen-based Bayer hailed the planned merger as "an extraordinary opportunity to create a global leader in the agricultural industry. Monsanto is a perfect match to our agricultural business."

Bayer CEO Werner Baumann said the company would have to "decisively address the point of reputation and challenges of Monsanto in Europe", adding that "our brand stands for responsibility, transparency and openness".

The German firm said expected synergies from the merger would result in an annual boost to earnings of around $1.5 billion after three years.

The announcement came just days after Monsanto said it had received an unsolicited bid from Bayer following weeks of speculation about a possible tie-up. Monsanto has not responded publicly to the latest offer.

Bayer shares, which fell last week on news of the proposal, dropped another 3.5 percent to about 86.5 euros by early afternoon Monday in Frankfurt, partially on investor concerns it might have offered too much to acquire Monsanto.

- Image problem -

According to the Wall Street Journal, the two companies would together account for around 28 percent of global sales of pesticides and herbicides.

Such a mega-merger could raise questions about market dominance, but Bayer said it "has a successful track record of working with global authorities to secure the necessary regulatory approvals".

The other risk is damage to Bayer's image if it swallows GM giant Monsanto, which describes itself as one of the world's leading biotech companies but which has long been a red rag to environmental groups worldwide.

Heike Moldenhauer of German environmental group BUND said the glyphosate issue "should deter Bayer from swallowing a 'toxic' company like Monsanto".

Sahra Wagenknecht of the far-left Linke party charged that Bayer's proposed acquisition of the "notorious genetics and poison company ... is a public menace".

And the Social Democrats' consumer affairs expert, lawmaker Elvira Drobinski-Weiss, pointed at Monsanto's "problematic" business practice of requiring farmers to buy new Monsanto seeds to plant crops, rather than use seeds from the previous harvest.

"With this takeover bid, Bayer is signalling that it's highly interested in this lucrative business," she told AFP.

Bayer CEO Baumann said the new mega-company could help feed the world.

"The agriculture industry is at the heart of one of the greatest challenges of our time," he told journalists.

"How to feed an additional three billion people in the world by 2050."

- 'Good fit' -

Low commodity prices have piled the pressure on agricultural suppliers like Saint Louis, Missouri-based Monsanto, which in March slashed its earnings forecast for 2016.

Sluggishness in the industry has also sparked consolidation deals such as a merger between DuPont and Dow Chemical.

Switzerland's Syngenta last year rejected an unsolicited offer from Monsanto, later agreeing to be bought by China National Chemical Corp for $43 billion.

Last year, following the unsuccessful bid for Syngenta, Monsanto embarked on a huge restructuring programme, saying it would axe 3,600 jobs -- or 16 percent of its workforce -- by 2018, closing sites and writing down assets.

Bayer, which employs around 117,000 workers, turned in record profits and sales in 2015, notching up a net profit of 4.1 billion euros on sales of 46.3 billion euros.

The Bayer statement said it was "premature at this stage" to estimate when the two companies would be joined as one.

Peter Spengler, analyst at DZ Bank Equity Research, said in a note that "strategically and regionally Monsanto is a good fit" for Bayer.

"Bayer will be significantly more leveraged than today but grabs a once in a lifetime chance to become a dominating world market leader in agriculture."

maj/ric-fz/rl

Monsanto

Bayer

SYNGENTA

DOW CHEMICAL