US seeks divestitures in Monsanto merger with cottonseed giant

0 Comments | AFP, May, 2007

WASHINGTON (AFP) — US authorities said Thursday agribusiness giant Monsanto and the world's largest cottonseed producer Delta Pine Land Company must divest certain assets to proceed with their 1.5-billion-dollar merger.

The Justice Department said the merger, as proposed by the two companies, would hike the prices of genetically modified cottonseed for American farmers.

"The significant divestitures and licensing changes obtained by the department through this enforcement action will ensure that cotton farmers benefit from competition to develop and sell high-yielding cottonseed with the most desirable traits," said Thomas O'Barnett, the head of the Justice Department's antitrust division.

Government lawyers claimed that, unless changed, the deal would have...