DuPont (NYSE: DD ) and Monsanto (NYSE: MON ) have come to terms on a multiyear, multitechnology agreement that has DuPont making annual royalty payments to Monsanto totaling $1.752 billion, from 2014 through 2023. DuPont and Monsanto announced the new licensing arrangement in joint press releases.
The deal calls for DuPont Pioneer, a Dupont business, to offer Monsanto's soybean technologies in the U.S. and Canada, specifically the Genuity Roundup Ready 2 Yield by 2014, and the Genuity Roundup 2 Xtend soybeans by 2015, pending regulatory approvals. In addition to the royalty payments, Monsanto will receive access to DuPont Pioneer's disease-resistant and corn-defoliation patents.
The deal's financial arrangement has DuPont making annual royalty payments from 2014 to 2018, totaling a minimum of $802 million. DuPont will continue making annual payments to Monsanto on a per-unit basis for the life of the agreement beginning in 2018, subject to royalty payments totaling at least $950 million, until 2023.
The joint announcements also say DuPont and Monsanto have agreed to dismiss their respective antitrust and Roundup Ready soybean patent lawsuits.