15 October 1998
Monsanto to resume GM expansion
BIOTECH giant Monsanto will resume its strategy of building a life sciences group following the collapse of its $80bn merger with American Home Products.
“Weve got a lot to deal with in working on our strategy – thats the priority”, said company chairman in an interview with the Financial Times.
Monsanto sold off its main chemicals interests about a year ago.
But over a three-year period, it has splashed out about $8 billion on a string of seed company and agribusiness-related acquisitions, aiming to build a leading position in genetically-engineered crops.
Some of these transactions are still not finalised.
Monsantos $2.3 billion purchase of a 60% stake in DeKalb Genetics depends on approval by anti-trust authorities, as does does a $1.2 billion deal for cottonseed company Delta & Pine.Monsanto plans to finance its ambitious plans for growth by an additional $2bn revolving credit facility.
It also exploring raising funds through a plain equity or some form of convertible security.