German pharmaceutical and chemical giant Bayer has increased its offer to acquire missouri-based seed company Monsanto.

On Tuesday, Bayer confirmed that negotiations have advanced in its takeover bid for Monsanto, having upped its offer to $127.50 per Monsanto share, or $65 billion (£49bn) all told.

Monsanto confirmed in a statement that the company has “been engaged in constructive negotiations with Bayer AG.”

The statement went on, “Monsanto is continuing these conversations as it evaluates this proposal, as well as proposals from other parties and other strategic alternatives to enable its Board of Directors to determine if a transaction in the best interests of its shareowners can be realized. There is no assurance that any transaction will be entered into or consummated, or on what terms.”

Last time the two companies were linked, in July, there were reports that board members at Monsanto were unhappy with the idea of a takeover. In Germany, environment groups have pledged to oppose any such merger, highlighting Monsanto’s reputation amongst green groups and warning that it would create the world’s largest agro-chemical company with a stranglehold on agricultural inputs, increasing consolidation in an industry that is already dominated by a small number of players with serious clout.

In mid-July, Monsanto rejected Bayer’s offer of $125 per share.