Monsanto to spin off chemical interests
By FWi staff
MONSANTO announced in the US yesterday that shareholders had approved the previously announced spin-off of its chemical business. It will form a separate company called Solutia Inc.
Monsanto said its life sciences businesses would retain the Monsanto name. These include the biotechnology, pharmaceutical, food-additive and all agricultural divisions, including herbicide and crop-related interests.
Solutia, which will list on the New York Stock Exchange on September 1, will own and operate businesses that produced US$3 billion (£1.87bn) in sales in 1996. The new company will rank among the top 25 chemical manufacturers in the US, and will command turnover large enough to earn a spot in the Fortune 500.
Solutias businesses will include artificial fibres, plastic for laminated glass, phosphorus-based food ingredients, high-performance speciality chemicals and chemicals intermediates.
Monsanto said 35% of Solutias sales would come from overseas projects. It will operate and own 19 plants worldwide, including sites in Belgium, Canada and the UK.