A huge merger between Bayer and Monsanto that will likely have a big impact on the crop science community in the Triangle has been made, the crop science giants announced early Wednesday.

In a joint statement, the firms said the deal creates a “global leader in agriculture.”

The announcement also confirmed earlier news from Bayer that its crop science headquarters in RTP would be moved to St. Louis, where Monsanto is based.

Bayer Crop Science has several hundred employees in RTP and has invested heavily in expansion efforts over the past several years.

Post-merger, the Triangle operation will remain “an important presence,” the companies said.

“The combined agriculture business will have its global Seeds & Traits and North American commercial headquarters in St. Louis, Missouri, its global Crop Protection and overall Crop Science headquarters in Monheim, Germany, and an important presence in Durham, North Carolina, as well as many other locations throughout the U.S. and around the world. The Digital Farming activities for the combined business will be based in San Francisco, California,” the companies pointed out.

Bayer is paying $128 per share in cash for Monsanto for a total price of $66 billion, including debt.

Consolidation of operations will produce “significant value creation” of some $1.5 billion a year in three years.

The companies added they are:

  • “Committed to retaining strong presence in the U.S.
  • “Combined business’ global Seeds & Traits and North American commercial headquarters in St. Louis”

“We are pleased to announce the combination of our two great organizations. This represents a major step forward for our Crop Science business and reinforces Bayer’s leadership position as a global innovation driven Life Science company with leadership positions in its core segments, delivering substantial value to shareholders, our customers, employees and society at large,” said Werner Baumann, CEO of Bayer AG, in a statement.

The Wall Street Journal reported earlier that Bayer and Monsanto “are expected to announce a tie-up as early as Wednesday that would value the U.S. seed-maker at close to $130 a share, or more than $65 billion in total including debt.”

Bayer had recently upped its offer again for Monsanto.

The Leverkusen, Germany-based drug and chemicals company said in a statement last week it was offering $127.50 per Monsanto share, up from the previous $125 a share offer. Excluding debt of about $9 billion, that values Monsanto at $55.8 billion, about $1 billion more than the previous offer.

On July 15, Bayer raised its offer to $125 per share.

It gave no further details on the latest takeover bid and said “there can be no assurance that the parties will enter into an agreement.”

Monsanto, based in St. Louis, Missouri, has already rejected two offers from Bayer and described the previous offer in July inadequate.

At the time, the company said it remained open to talks with Bayer and others about a deal.