The board of Monsanto Chemicals of India Ltd (MCIL) today approved a proposal for integrating the agriculture business of Monsanto in India through a series of strategic acquisitions.

This will make MCIL, a comprehensive agricultural inputs provider in India.

The proposal, fully supported by Monsanto Company, USA, envisages the acquisition of Monsanto’s seed research, production and marketing. Monsanto’s strategic marketing and distribution platform and automatic access to new products.

This means the acquisition of the entire shareholding of Monsanto Technologies India Ltd (MTIL) and the agriculture business and related assets currently residing in Monsanto Enterprises Ltd and Monsanto India Ltd, the company said in a Press release.

In consideration for the acquisitions, the board of MCIL have approved, in accordance with SEBI guidelines, an issue of equity shares on a preferential basis to Monsanto.

This will result in an increase of Monsanto’s holdings in MCIL from the current 40 per cent to about 72 per cent. The transaction has been advised and structured with the assistance of investment bankers Kotak Mahindra Capital company. The board of MCIL has convened an extraordinary general meeting of shareholders on April 11, 2000 to seek their approval.

Announcing the integration plan, Terry Bunn, Chairman MCIL and Director of Monsanto’s South Asia business, said: "This will strengthen existing MCIL operations by leveraging synergies and economies of scale to serve the farmers of India more effectively in their efforts to enhance productivity and yields in an increasingly competitive environment. The merged company will have greater access to Monsanto’s worldwide leading edge technologies and experience in the agricultural sector.”

“This will help enhance MCIL’s distribution reach as it can now access the entire range of Monsanto’s agricultural portfolio which includes herbicides, seeds and biotech products.”

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