US seeks divestitures in Monsanto takeover of cotton seed giant

0 Comments | AFP, May, 2007

WASHINGTON (AFP) — US authorities said Thursday they required Monsanto and the world's largest cotton seed producer Delta Pine Land Company to divest some assets so Monsanto can proceed with its 1.5-billion-dollar takeover.

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

Agribusiness giant Monsanto said in a statement that it would make the divestitures required by the government and that it hoped to close the deal "as soon as possible."

"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 cotton seed with...