German chemical and pharmaceutical giant Bayer said late on Monday it is in “advanced negotiations” to buy the world’s largest seed company Monsanto for more than $65 billion.

A combination of the two firms would create the world’s biggest agrochemicals company.

This is the second time Bayer has increased its offer for Monsanto as it tries to complete what would be the biggest ever agriculture takeover deal.

According to Reuters, Bayer’s bid was already the largest cash takeover offer on record.

“While key terms and conditions have not yet been agreed, Bayer would be prepared to provide a transaction consideration of $127.50 per Monsanto share only in connection with a negotiated transaction,” said Bayer.

Monsanto, run by Scottish-born chief executive Hugh Grant from Larkhall, turned down Bayer’s last offer of $125 a share, but said it was open to further talks with the German company as well as with other parties.

“There can be no assurance that the parties will enter into an agreement,” said Bayer.

“The proposed transaction would be subject to regulatory approval and other customary closing conditions.

“The key conditions of a definitive transaction agreement must be approved by the Supervisory Board of Bayer AG.”

Bayer’s $127.50 per share offer compares to Monsanto’s last market closing price of $107.44 and is 2% more than its previous bid.