Monsanto merger ahead of schedule
16 March 2000
Monsanto merger ahead of schedule
LIFE sciences giant Monsanto and pharmaceutical company Pharmacia & Upjohn look set to close their merger on or before April 1 — weeks ahead of schedule.
The companies entered into a merger agreement in December and at the time predicted the deal would be closed during the second quarter of the year.
The European Union has also extended the deadline for clearing the proposed merger to March 30 from March 17, to allow the companies to divest pharmaceutical companies in Scandinavia, reports Reuters news agency.
The waiting period under U.S. antitrust legislation expired last month, and shareholders of both companies will hold special meetings on March 23 to vote upon the merger.
The new company will be called Pharmacia Corp and will be based in Peapack, New Jersey.
Up to 20% of Monsantos agricultural unit, which includes genetically modified seeds and Roundup pesticide among its products, will be sold once the companies merge.
The remainder of Monsantos agricultural business will have its own headquarters in St Louis will retain the Monsanto name.
This was seen as a move by the new company to distance itself from the controversy surrounding GM technology, which was blamed for bringing the Monsanto share price down.
But Fred Hassan, who will head Pharmacia, recently gave his support to GM technology and said his company would go on an “education offensive” in Europe where resistance is strongest.
Meanwhile, the board of Monsanto Chemicals of India Ltd has approved a proposal for integrating the agriculture business of Monsanto in India through a series of strategic acquisitions.
This will make MCIL, a comprehensive agricultural inputs provider in India, reports The Hindustan Times.
The proposal envisages the acquisition of Monsantos seed research, production and marketing, Monsantos strategic marketing and distribution platform and automatic access to new products.