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Monsanto increases investment
in Mendel
Tuesday, October 16, 2007
By Carey Gillam
KANSAS CITY, Missouri - Monsanto Co said on Monday that it had increased its investment in Mendel Biotechnology Inc in a deal that will boost the privately held company`s work in cellulosic biofuels like grasses and food crop waste.
Mendel, based in Hayward, California, will also use the proceeds to repurchase shares from current holders of stock and options, slightly increasing St. Louis-based Monsanto`s stake in the company.
The companies did not disclose additional financial details.
Since Mendel was founded in 1997, the company has worked with Monsanto to support the discovery and development of new technologies for agriculture.
Mendel has identified and patented the use of genes that control many aspects of plant growth and development. It is using such inventions to develop new plant varieties with improved productivity and quality.
Monsanto has exclusive royalty-bearing licenses to Mendel technology in certain large-acreage crops, including soybeans. In return Monsanto pays Mendel to perform research and provides commercial rights to key technologies.
Mendel lately has been working on developing dedicated energy crops for the biofuel industry.
"Mendel has been an important collaborator for us, and their research continues to play an important role in the development of new products for the farm," Steve Padgette, vice president of biotechnology at Monsanto and a Mendel board member, said in a statement.
© Reuters2007
Source: Reuters
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