14 October 1998
AHP could spin off agrochem business

US-BASED American Home Products (AHP) could sell off its agrochemicals division following the failure of the companys proposed merger with biotech giant Monsanto.

AHP and Monsanto abandoned their proposed $34bn merger reportedly because of culture clashes and arguments between senior executives.

It was the second time this year AHP walked away from a merger.

Company representatives were previously in talks with SmithKline Beecham before Glaxo Wellcome proposed a similarly ill-fated merger with SmithKline at the end of January.

Meanwhile, Monsanto said it was “implementing plans for financing over the next few years” to buy more companies and bring new products to the market.

Monsanto is attempting a $2bn stock issue to help to finance four recent acquisitions. These include DeKalb Genetics and Plant Breeding International.

The company has spent about $7bn buying up seed companies in recent years, often on generous earnings multiples, as part of its push into the genetically engineered crop business.

  • EC clears Monsanto merger with Cyanamid – FWi 29 September 1998
  • Monsanto and Cyanamid parent to merge – 2 June 1998
  • The Times 14/10/98 page 23, page 27 (Commentary)
  • The Independent 14/10/98 page 16, page 20 (Market Report)
  • Financial Times 14/10/98 page 28 (Lex), page 34
  • The Guardian 14/10/98 page 23, page 23 (Notebook)
  • The Daily Telegraph 14/10/98 page 29