Justice Department Requires Divestitures in $1.5 Billion Merger of Monsanto and Delta & Pine Land
On May 31, the Monsanto Company and Delta & Pine Land Company (“DPL”) were required to divest a significant seed company, multiple cottonseed lines, and other valuable assets in order to proceed with their $1.5 billion merger. Monsanto was also required to change certain license agreements as a condition for proceeding with its acquisition of DPL. The DOJ said that the transaction, as originally proposed, would have caused higher prices to U.S. farmers for traited cottonseed and would have blocked or delayed development of traits for cottonseed that would compete with Monsanto. Traited cottonseed is seed that has been genetically modified to include highly desirable characteristics, such as resistance to insects or tolerance to herbicides.
