Bayer, the German crop science company, has once more upped the ante in its takeover advances for US rival Monsanto. This week, Bayer said it was in “advanced negotiations” with Monsanto over a takeover deal, although key terms have yet to be agreed.

While there is still a long way to go, a deal is looking increasingly likely, with Bayer saying it was willing to pay up to $127.50 per share for Monsanto. Including Monsanto’s $9.3bn in debt, this would equate to a takeover offer of $65bn – the largest all-cash bid on record. Having rejected offers of $62.6bn and $64bn in May and July, Monsanto said it was in “constructive” talks with Bayer around this fresh proposal. A deal would create the world’s largest seed and chemicals company.

The sector has seen a wave of consolidation in the last year. In December, Dow and DuPont announced a $130bn merger, while a month later ChemChina revealed a $43bn takeover of Swiss seed and chemical giant Syngenta.