DOW JONES NEWSWIRES
Danish enzyme maker Novozymes A/S (NZYM-B.KO) Tuesday said it is
establishing a strategic alliance with U.S.-based Monsanto Co.
(MON) to develop bioagricultural products which allow farmers to
increase crop yields.
MAIN FACTS:
-Monsanto will pay Novozymes an aggregate upfront payment of
$300 million net in recognition of Novozymes' ongoing business and
microbial capabilities, and for Novozymes to supply alliance
products.
-Novozymes will be responsible for production and supply of the
microbial solutions to Monsanto. Monsanto will serve as the lead
for field testing, registration and commercialization of all
alliance products.
-The companies will co-manage the alliance and co-fund research
and development efforts.
-Marketing responsibility for Novozymes' current product
portfolio in agricultural biologicals will be transferred to
Monsanto along with much of the Novozymes commercial organization
currently responsible for that work.
-The agreement is subject to the approval of the relevant
national antitrust authorities to the extent required.
-The alliance is expected to close in early 2014.
-At 1331 GMT, Novozymes shares were up 2.8% at DKK212.40 against
a 0.5% drop in the wider Copenhagen market.
Write to Gustav Sandstrom at gustav.sandstrom@dowjones.com
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