29 September 1998
EC clears Monsanto merger with Cyanamid
By FWi staff
THE European Commission has cleared the proposed merger between Monsanto and the American Home Products Corporation, which owns Cyanamid.
A Commission investigation found that the planned merger was within EU competition rules and would not give the new company an unfair advantage in the EU market for plant protection products.
The deal, which was first announced last June, is estimated to be worth £59 billion
The two companies expect combined sales to total more than £14bn during 1998, with products ranging from household goods to genetically modified (GM) crops.
Monsantos portfolio includes the development of genetically modified crops of soyabeans and oilseed rape.
Monsanto shareholders will receive 1.15 shares in the new company for each of their existing Monsanto shares. They will own about 35% of the new company.
Although earnings per new share are expected to drop by as much as 15% in the two years following the merger, a statement released from the two companies forecasts that they will increase soon afterwards.