Kirayaka International - DuPont And Monsanto Agreement.

Online, May 2, 2013 (Newswire.com) - Kirayaka International has reportedly announced in a recent meeting that DuPont and Monsanto have agreed to end their lawsuits and to enter into a licensing deal worth $1.75 billion.

The top seed companies in the world, Monsanto Co and DuPont Co, have agreed a new $1.75 billion licensing deal, which will also see them cease all legal battles between the two firms over their genetically modified seed technology. Kirayaka International apparently highlighted that a spokesperson for DuPont also publicly confirmed that the agreement would see the throwing out of a $1 billion jury award in favor of Monsanto from last year.

As part of the deal, DuPont has agreed to make royalty payments over several years that will amount to at least $1.75 billion, for which they will gain broad access bleeding edge genetic technology from Monsanto for new seed product development.

Kirayaka International allegedly noted that DuPont would make four annual royalty payments between 2014 and 2017 to Monsanto, amounting to a minimum of $802 million, after which annual payments will be based on a per unit basis until 2023, when the agreement expires, totaling at least a further $950 million.

At market close in the wake of the announcement, DuPont were down 0.3 percent at $48.97, while Monsanto climbed 4.4 percent to close at $103.79.

Kirayaka International apparently seem to believe that this could be a big positive for DuPont, not only do DuPont remove the threat of the $1 billion settlement, but gain access to vital technologies that will dovetail nicely with their own existing and developing technologies. Meanwhile Monsanto also gain a significant new revenue stream.