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Monsanto sells cottonseed brand to Bayer CropScience

Agriculture.com Staff 06/01/2007 @ 7:36am

Monsanto Company (NYSE: MON) announced late Thursday that it has reached an agreement with the U.S. Department of Justice (DOJ) that will allow it to complete its proposed acquisition of Delta and Pine Land Company, according to a Monsanto press release.

Under terms of the agreement, which was filed today in Federal Court in Washington, D.C., Monsanto will be required to divest certain assets including its U.S. branded cotton seed business. Monsanto plans to close its acquisition and resulting divestitures as soon as possible following the required approvals from the court and the DOJ.

Monsanto has entered into a definitive agreement to sell its Stoneville® cotton seed brand and related business assets, subject to Justice Department approval, to Bayer CropScience for $310 million.

As part of this agreement, Monsanto has agreed to sell to Bayer CropScience certain conventional cotton parental lines that Monsanto will acquire from Delta and Pine Land's cotton breeding program. Monsanto will retain a non-exclusive license to these same parental lines. Bayer's FiberMax® brand and the Stoneville brand will continue to be licensed to use Monsanto's cotton trait technologies.

Also, Monsanto has entered into a definitive agreement to sell its NexGenâ„¢ cotton seed brand and related business assets, also subject to Justice Department approval, to Americot for $6.8 million. As part of this agreement, Monsanto has agreed to sell to Americot certain conventional cotton parental lines that Delta and Pine Land acquired from Syngenta in 2006.

During the interim period between when the company completes its acquisition and when it completes its divestitures, the Delta and Pine Land business will operate independently of Monsanto's other commercial operations.

*posted by Mike McGinnis, Agriculture Online Markets Editor

Monsanto Company (NYSE: MON) announced late Thursday that it has reached an agreement with the U.S. Department of Justice (DOJ) that will allow it to complete its proposed acquisition of Delta and Pine Land Company, according to a Monsanto press release.

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