Bayer looking to buy Aventis CropScience

After months of speculation, Bayer has emerged as the clear favorite toacquire Aventis CropScience after Aventis (which owns 76% of the concern) and Schering AG (which holds the remaining 24% stake) announced that they are set to enter into exclusive negotiations with the Leverkusen-based group regarding the sale of CropScience. The two sellers issued a statement poitingout that, "after analyzing first bids from several companies, Bayer has emerged as the most promising partner, financially and socially."

The three companies gave no financial details regarding the deal but observers have put values on CropScience ranging from 4-8 billion euros ($3.39-$6.78 billion). The firms also noted that the exclusive talks do not constitute any legally binding agreement.

Bayer chairman Manfred Schneider said that the firm's crop protection business is a core activity, adding that this acquisition "would create one of the world's leading companies in this industry." If the deal goes through, it may disappoint some investors, who would prefer to see Bayer strengthen its position in pharmaceuticals rather than in crop protection, some obervers note.