facebook_pixel

Monsanto to Buy Delta and Pine Land

In a $1.5 billion cash transaction, Monsanto Co. announced plans to purchase the world’s largest supplier of cotton seed, Delta and Pine Land Co. (D&PL), in mid-August. St. Louis-based Monsanto and Scott, MS-based D&PL had been in on-again, off-again, on-again negotiations since 1998. Both boards of directors have approved the deal, but at the time it was announced, it lacked Justice Department approval and approval by D&PL stockholders. If the stockholders agree, they will receive $42 per share. There was no offer of Monsanto stock in exchange for D&PL stock.

Monsanto originally offered $1.9 billion in 2000, but pulled the offer, fearing that regulatory approval would not follow. Monsanto owned, and continues to own, the Stoneville brand of cotton seed — the world’s No. 2 cotton seed supplier at the time — and came to doubt it would pass anti-trust scrutiny, given the potential market share. D&PL sued Monsanto, alleging that Monsanto had not made a good-faith effort to obtain regulatory approval. The case was headed for court this fall, and it is expected to be dismissed once the deal has been approved by all involved. No time frame for final approval was announced.

Stoneville is currently the world’s No. 3 cotton seed supplier, with Bayer CropScience’s FiberMax line moving into the No. 2 spot.

Good-Bye to Stoneville?

Monsanto now says that, if necessary, it will divest itself of the Stoneville brand, but no potential buyer had emerged at the time of this writing.

Monsanto also purchased D&PL’s soybean seed business and will add the D&PL brand to its current soybean seed portfolio. Monsanto also markets corn seed.

As the world’s largest cotton seed supplier, D&PL has been one of the main vehicles for Monsanto’s Bollgard, Bollgard II, Roundup Ready and Roundup Ready Flex transgenic traits.

“Delta and Pine Land represents an excellent fit for our company as we look to bring value-added traits and high-quality seed to cotton growers around the world,” said Hugh Grant, chairman, president and CEO of Monsanto.

Added Tom Jagodinski, president and CEO of D&PL, “Monsanto is a leading products company with a strong track record of growing and integrating diversified businesses, our companies are a natural fit that will provide a complete platform of cutting edge seed technologies to our global farmer customer base for years to come.”

In a press conference on August 15, Ernesto Fajardo, Monsanto’s vice president of crop production, made the following points:
• Both Monsanto and D&PL are organizations that are 100% committed to agriculture and heavily committed to cotton.
• Both companies see the announcement as a great opportunity to pair Monsanto’s trait technologies with the strong genetics and brand offerings of Delta and Pine Land. Monsanto will combine its research and development resources and technology pipeline with D&PL’s existing strengths in breeding.
• Over the last several years, Monsanto has worked closely with D&PL and other cotton seed companies to broadly license Monsanto trait technologies to cotton farmers throughout the U.S.

“The near-term focus for D&PL and Monsanto is to make sure we serve our customers,” said Randy Dismuke, D&PL senior vice president for U.S. business. “We want to be sure cotton and soybean producers understand what this news means for them as they make decisions in real time. As the 2006 cotton season draws to a close across the Cotton Belt, cotton growers will begin to make decisions for the 2007 season. With D&PL’s long-standing commitment and reputation for supplying producers with leading cotton varieties, it’s only natural for growers to ask if they can depend on Delta and Pine Land for varieties they know and prefer. The answer is yes.

“Additionally, it is important to remember that Monsanto and Delta and Pine Land have not completed the deal,” added Dismuke. “Until this transaction is closed, Delta and Pine Land will compete aggressively with Monsanto’s Stoneville and NexGen brands, as well as all other brands in the marketplace.”

Leave a Reply

Seed Varieties Stories
Seed Varieties

Cotton Varieties Eyed in AgriLife High Plains Trials

April 20, 2017

With more producers interested in cotton due to good markets and prices, the Texas A&M AgriLife Extension variety trials are sure to get more attention in the coming weeks and years.

Seed Varieties

Tennessee 2016 Variety Trial Results Now Online

December 28, 2016

The 2016 Tennessee Cotton Variety Trial Results publication is now available online.

Seed Varieties

Mississippi 2016 Variety Trial Results Now Available Online

December 8, 2016

Data for the 2016 Mississippi Cotton Official Variety Trial program and for the On-Farm Cotton Variety Trials is now available online.

Seed Varieties

NC State 2016 On-Farm Fiber Quality Results Now Online

December 2, 2016

Fiber quality results for the 2016 North Carolina On-Farm Cotton Variety Evaluation Program are now available online.

Seed Varieties

Preliminary 2016 Variety Trial Data Available in TN, NC

December 2, 2016

Preliminary variety performance data from 2016 trials in both Tennessee and North Carolina can now be found online.

Seed Varieties

PhytoGen Poised for Breakout Success

December 1, 2016

Varieties like PHY 333 WRF have laid the template for success at PhytoGen. Now, the Enlist trait is poised to bolster that winning formula.

Seed Varieties

Deltapine Varieties Gain Ground in 2016

November 29, 2016

In 2016, farmers across the Cotton Belt flocked to Deltapine varieties featuring the company’s new trait technology.

Around The Gin
Product News

Americot Adds Three to Regional Sales Force

September 20, 2017

Americot, Inc. has added three new regional representatives to the company’s sales force.

Product News

Enlist One Herbicide Added to Enlist System

September 13, 2017

Dow AgroSciences adds a straight-goods 2,4-D choline herbicide for additional tank-mix flexibility in Enlist crops.

Product News

Elevore Herbicide Registered for Burndown Use

August 30, 2017

Dow AgroSciences’ Elevore herbicide has received federal registration for use in fall and spring burndown programs for cotton, soybeans and corn.

Product News

Stoneville Legacy Club Honors Charter Members

August 24, 2017

The new Stoneville Legacy Club honored 129 growers who recorded average yields of 1,794 lbs/A or higher on at least 20 acres with Stoneville cotton varieties.

Product News

Improved Bollworm Management Expected in 2018

August 23, 2017

Southeast Texas cotton farmers should have new tools available in 2018 to better manage bollworms and other potentially damaging pests.

Product News

Maximizer Club Honors Top FiberMax Dryland Growers

August 17, 2017

The FiberMax Maximizer Club honored 121 growers who yielded at least 1,000 lb/A on dryland acres with FiberMax varieties in 2016.

Product News

Monsanto, Valent Expand Roundup Ready PLUS Partnership

August 7, 2017

Monsanto and Valent U.S.A. are expanding their crop protection partnership for the 2018 Roundup Ready PLUS Crop Management Solutions platform.

Product News

New Broadleaf Burndown Option Coming from Dow AgroSciences

July 31, 2017

A new burndown option for tough broadleaf weeds has shown excellent promise in trials across the Mid-South and Midwest.

Latest News
Seed Varieties

Cotton Varieties Eyed in AgriLife High Plains Trials

April 20, 2017

With more producers interested in cotton due to good markets and prices, the Texas A&M AgriLife Extension variety trials are sure to get more attention in the coming weeks and years.

Seed Varieties

High Plains, Rolling Plains Variety Trial Results Available

February 17, 2017

Texas A&M AgriLife Extension agronomists in the High Plains and Rolling Plains have released the results of their large plot, on-farm, replicated cotton variety trials from 2016.

Seed Varieties

Variety Trial Results Reflect 2016 Extremes in East and South TX

January 19, 2017

The Texas A&M AgriLife Extension 2016 Replicated Agronomic Cotton Evaluation trial results from South and East Texas reflect the extremes of the past season.

Seed Varieties

Tennessee 2016 Variety Trial Results Now Online

December 28, 2016

The 2016 Tennessee Cotton Variety Trial Results publication is now available online.

Seed Varieties

Mississippi 2016 Variety Trial Results Now Available Online

December 8, 2016

Data for the 2016 Mississippi Cotton Official Variety Trial program and for the On-Farm Cotton Variety Trials is now available online.

Seed Varieties

NC State 2016 On-Farm Fiber Quality Results Now Online

December 2, 2016

Fiber quality results for the 2016 North Carolina On-Farm Cotton Variety Evaluation Program are now available online.

Seed Varieties

Preliminary 2016 Variety Trial Data Available in TN, NC

December 2, 2016

Preliminary variety performance data from 2016 trials in both Tennessee and North Carolina can now be found online.

Seed Varieties

PhytoGen Poised for Breakout Success

December 1, 2016

Varieties like PHY 333 WRF have laid the template for success at PhytoGen. Now, the Enlist trait is poised to bolster that winning formula.

Seed Varieties

Deltapine Varieties Gain Ground in 2016

November 29, 2016

In 2016, farmers across the Cotton Belt flocked to Deltapine varieties featuring the company’s new trait technology.

Seed Varieties

CROPLAN Making Its Mark in Cotton

November 26, 2016

With proven varieties and technologies, plus an expanding product pipeline, CROPLAN continues to grow its footprint across the Cotton Belt.

Seed Varieties

Bayer’s Seed Brands Consistent, But Not Complacent

November 23, 2016

Bayer’s Stoneville and FiberMax brands continue their high level of success across the Cotton Belt. But new varieties and resources keep them well positioned for more growth.

Seed Varieties

Americot’s Plan: Keep Coming On Strong

November 21, 2016

Americot/NexGen stunned the market with the top planted cotton variety for 2016. And, based on their plan, they’re just getting started.

Seed Varieties

All-Tex, Dyna-Gro Gearing Up for 2017

November 17, 2016

An aggressive lineup of varieties and trait options for 2017 is helping position the All-Tex and Dyna-Gro brands for market expansion.

Seed Varieties

Deltapine Holds Top Spot in 2016 Planted Varieties

September 15, 2016

Deltapine retained the top spot as the top cottonseed brand planted in the U.S. this year. But a strong performance – and the top planted variety – vaulted Americot up the USDA rankings.

Seed Varieties

Variety Maturity Guide Available from MS State

March 8, 2016

A new guide to variety maturity that shows where popular cotton varieties fall on a maturity timeline is now available online from Mississippi State University.