EXCLUSIVE: Monsanto-Delta deal nears U.S. antitrust OK

By Peter Kaplan

WASHINGTON (Reuters) - U.S. antitrust authorities are poised to approve plans by biotech crop developer Monsanto Co. (MON.N: Quote, Profile, Research, Stock Buzz) to buy Delta and Pine Land Co. DLP.N on the condition that the companies divest some key assets, a source familiar with the deal said on Thursday.

Antitrust officials at the Justice Department are working out final details of a settlement deal that would require the companies to sell some genetic material owned by Delta and Pine that is used to develop new cotton seed varieties, the source said.

The genetic material, known as germplasm, would be sold to a rival company in the business, the source said.

Monsanto would also follow through on previously announced plans to sell its Stoneville cotton seed brand to get approval of the $1.5 billion deal, according to the source, who spoke on condition of anonymity.

Justice Department spokeswoman Gina Talamona said the investigation of the deal was ongoing and declined to make further comment.

Monsanto spokesman Lee Quarles said: "The Department of Justice's review is not yet complete and we look forward to their decision." He declined to comment further.

The conditions imposed by the department would resolve its concerns about how the combination could affect competition in the cotton seed business, the source added.

Monsanto's acquisition of Delta and Pine has provoked opposition from farm and consumer groups as well as competitors including DuPont Co. (DD.N: Quote, Profile, Research, Stock Buzz) and Syngenta AG (SYNN.VX: Quote, Profile, Research, Stock Buzz).