Monsanto to purchase cottonseed company

ST. LOUIS (AP) - Monsanto Co. will pay $1.5 billion in cash to purchase Delta and Pine Land Co. in a merger of two of the world’s largest seed companies, a move that would end a long-standing legal dispute stemming from a failed merger eight years ago.

Monsanto first announced plans to buy Scott, Miss.-based Delta and Pine Land in 1998, but backed out, prompting a legal dispute that continued up until the new agreement. Monsanto said the case will be dismissed once the merger is complete.

Delta and Pine Land shareholders will receive $42 per share in cash, a premium of 16 percent over the stock’s Monday closing of $36.24

Directors for both companies have approved the deal, which must still be approved by Delta and Pine Land shareholders and pass antitrust clearance.

Delta and Pine Land is a leading cottonseed company and operates the largest and longest running private cottonseed breeding program in the world. St. Louis-based Monsanto is one of the world’s largest agricultural products companies and makes Roundup, the world’s best-selling herbicide.

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