Monsanto Co. said it has been contacted by the Justice Department as part of an investigation into whether anticompetitive practices had been used in the herbicide industry.
The St. Louis crop-biotechnology and herbicide company said in an annual report to the Securities and Exchange Commission the government has requested information on its glyphosate business, which includes its Roundup weed killer.
The company said in Thursday's filing it is cooperating with the inquiry, and a Monsanto spokeswoman said the company believes it has "acted appropriately." Monsanto's understanding is that the Justice Department is requesting information from several glyphosate makers and distributors.
A spokesman for DuPont Co., which also makes and sells glyphosate, confirmed the chemicals company has been contacted by government investigators, and is cooperating fully. DuPont, of Wilmington, Del., has been asked only to provide information, and "we are not a target of the investigation," a spokesman said.
Roundup, long a cash cow for Monsanto , has seen increasing pressure during recent years since losing U.S. patent protection during 2000, as rivals cut prices on competing herbicides. The company said early last month that pricing pressures for Roundup would likely continue.
Monsanto has faced allegations during the past over its glyphosate business. Most recently, Chemical Products Technologies LLC, a closely held Cartersville, Ga., chemicals company, filed an antitrust suit against Monsanto accusing the company of trying to illegally block competitors from selling and distributing generic herbicides based on glyphosate. Monsanto countersued, and the companies agreed to dismiss their suits during December.
Analysts said they were surprised by the announcement of the Justice Department inquiry. "There's not a lot of information out there and at this point you don't know what triggered it, what angle the DOJ is coming at it from," said James Halloran, a stock research analyst with National City Wealth Management Services, a money-management firm in Cleveland.
Monsanto shares fell $2.51, or 15%, to $14.07 as of 4 p.m. Friday in New York Stock Exchange composite trading. DuPont stock rose 52 cents a share, or 1.4%, to $37.82 a share.
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