Monsanto to spin off chemical interests

19 August 1997

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.