Bayer announced Monday it has offered $122 per share for Monsanto in an all-cash deal that values the U.S. agri-chemicals company at $62 billion.
Word of the deal help boost Monsanto's share price by more than 8 percent at $109.97 a share in premarket U.S. trading Monday. (Click here for the latest price.)
Asked on Monday why shares were not trading closer to the offer price, Bayer CEO Werner Baumann said Wall Street needed time to educate itself on the deal.
Baumann told CNBC's "Squawk Box" he did not see any major regulatory or other risks to the transaction, and noted it would be fully funded.
"The beauty of this combination is that both businesses are highly complementary, and it's very much a growth story that is behind the combination. The product portfolios complement each other perfectly. The regional fit is really great," he said.