Monsanto, Syngenta Reach Global Pact; Settle Lawsuits

Monsanto announced that it has granted Syngenta a global royalty-bearing license for the use of the Roundup Ready 2 Yield technology across the company’s soybean seed brands. The companies also agreed to settle all antitrust and commercial litigations, including Syngenta's antitrust action against Monsanto and infringement cases on herbicide-tolerant and insect-protected corn technologies. Monsanto was given a royalty-bearing license for the use of Syngenta’s dicamba tolerance technology. Syngenta, on the other hand, no longer has to pay royalty for the corn-borer resistance (Bt 11) trait and herbicide tolerant maize (GA21) technology. The companies will also work together to develop new herbicide-tolerant and Bt insect-protection products in corn, soybean and cotton.

With the agreement, Monsanto estimates a potential available acreage of 45  to 55 million acres in the United States for the product. Monsanto believes that Roundup Ready 2 Yield ultimately could be used on approximately 75 percent of an average of 60 to 70 million soybean acres in the U.S. Last year, Syngenta’s soybean brand represented 12 percent of total U.S. sales, while Monsanto's Asgrow and American Seeds Inc. brands together represented 27 percent.

Read the press release at http://monsanto.mediaroom.com/index.php?s=43&item=604