Bayer Confirms Merger Discussions With Agriculture Giant Monsanto

German healthcare and agricultural giant Bayer confirmed on Thursday morning it is in preliminary discussions on a takeover of Monsanto , one of the biggest seed and agricultural firms in the United States.

Last year, it was Monsanto that was on the offensive, working on a near $50 billion takeover of Swiss competitor Syngenta . However, Monsanto dropped the offer in August amid unrest from shareholders and a weakening of the global agricultural market.

The company then embarked on a large stock buyback, lowering its share count nearly 10% through the course of 2015. Monsanto also laid out a restructuring plan intended to double earnings per share over the next five years.

Amid this change, and a potential bottoming in global agriculture markets, it appears Bayer, a German conglomerate, is eyeing a takeover that is likely to exceed $50 billion. Such a move would further diversify Bayer -- best known among consumers for healthcare products like Asprin, Alka-Seltzer, Claritin, Copportone Sunscreen and Xarelto -- a into an agricultural powerhouse.

"Bayer executives recently met with executives of Monsanto to privately discuss a negotiated acquisition of Monsanto," the company said in a Thursday morning press release.

"The proposed combination would reinforce Bayer as a global innovation-driven Life Science company with leadership positions in its core segments, and would create a leading integrated agriculture business." the company added. Monsanto shares gained over 5% in early trading on Bayer's confirmation of a possible merger bid.

Those gains erased Monsanto's losses for the year, however, they did little to chip into its 15% decline over the past month.

Hedge fund Glenview Capital stands to gain from a potential deal. It owns roughly 2.5% of Monsanto, a stake worth in excess if $1 billion at Thursday prices.