February 14, 2011

DuPont looking at additional biotech acquisitions 

DuPont's head, Ellen Kullman said on Thursday (Feb 10) that biotechnology is a key part of the solution to the rising global need for more food and that a lot of companies are being watched, either to partner with or to acquire.

Asked if she was eyeing any firms in the Bay State, she said DuPont is always scouting out promising companies. "And if that means Massachusetts (companies), then so be it."

DuPont, whose revenues are heavily tied to its agriculture and nutrition division, is now in the process of trying to buy Denmark's Danisco, a biotech firm, for US$5.8 billion, as part of its strategy to expand its business in food crops.

But Kullman, a Tufts University graduate, suggested yesterday that Danisco may not be the last biotech company the Delaware-based DuPont attempts to buy.

Over the past few years, analysts have warned of high food prices due to a growing world population and loss of arable land.

Besides its huge chemicals business, DuPont is also one of the world's largest seed sellers.

However, previous agribusiness moves by DuPont and other companies have been often met with fierce resistance from organic-food and environmental groups worried about the impact of genetically modified foods on human health and the environment. Opposition to modified foods is particularly strong in Europe.

As for DuPont's pending purchase of Danisco, Kullman expressed confidence that the deal will go through, though some shareholders have complained its bid undervalues the Danish company.