German drugs giant Bayer has made a $62bn (£43bn) offer for Monsanto, in a deal that would create the world's biggest agricultural supplier.

Bayer said the bid was an "extraordinary opportunity to create a global agriculture leader."

Monsanto is primarily known for genetically modified crops, often leading to vocal activist criticism.

Last week, news of the deal angered Bayer investors, with one describing it as "arrogant empire-building".

The offer marks the biggest ever bid by a German company, dwarfing the Daimler's $38.6bn acquisition of Chrysler in 1998.

John Colley, a Professor of Practice at Warwick Business School, said it was an unusual approach for a German firm, which he said typically opted for lower risk expansion.

"The Bayer bid is clearly designed to leave the board of Monsanto with little room for manoeuvre. The large cash bid means - despite Monsanto's dislike of European ownership - they will appear as though self interest is prevailing if they reject it.

"Few megabids go well and research shows more than half destroy value, and only around a quarter deliver on their promises," he said.

Bayer's farm business produces seeds as well as compounds to kill weeds, bugs and fungus, but it is better known for its healthcare products such as Asprin and Alka-Seltzer.

Analysts said if the deal went through, almost half of the merged firms' business would be agriculture, a mix likely to displease investors who had bought shares in Bayer for its pharmaceutical offering.

Bayer's shares, which fell 8% when the merger talks were announced last week, fell 3% in early trading.

The offer comes amid a wave of mergers in the industry.

(BBC)