The German chemical and pharmaceutical conglomerate Bayer concluded the agreement on purchasing Monsanto, US producer of GMO products, for USD 66 bln, BBC reports, quoting the press release of the German company.

As the result of this deal, the world largest company, producing genetically modified seeds and pesticides, will be created.

Bayer will purchase Monsanto shares at $128 per share, the deal value will be USD 66 bln.

Monsanto is famous, first of all, for production of seeds, containing GMO, which is often criticized by GMO opponents.

Such seeds are widely spread in the USA, however the attempts to implement this technology in Europe met violent protests.

Currently the Bayer’s market value is USD 90 bln. Thanks to subsidiary companies, Bayer is one of the world largest producers of chemical fertilizers and pest control chemicals.

The leader in this industry is the Swiss company Syngenta. Last year Monsanto attempted to purchase Syngenta for USD 42 bln.

However, the Swiss company accepted the offer of Chechina, which was ready to pay USD 43 billion. The deal is expecting for approval of regulators.

The mergers of companies, producing seeds and pesticides, are carried out amid the decline in demand in their products and aimed at reducing losses.

The farming unions are already ringing the alarm, fearing that less number of market players will lead to inevitable raise in prices.

Therefore, the deal between Bayer and Monsanto, as the result of which more than 25% of global supplies of seeds and pesticides will be expectedly controlled by the new company, will be thoroughly analyzed by antimonopoly regulators.