Monsanto Company, a leading provider of technology-based solutions and agricultural products for farm productivity and food quality improvements worldwide, announced its strategic, long-term alliance with Novozymes A/S. Termed as "The BioAg Alliance" in the US-based company's press release, the joint venture will have the two companies leverage its technologies, commercial assets and employees in both of their agricultural biologicals portfolios. The cooperation, as explained in a Reuters report, will have Novozymes bring in its microbial discovery capabilities to the large commercial capabilities of Monsanto.

Under the terms of the deal, Monsanto will be shelling out a total upfront payment of USD300 million net to Novozymes.

Novozymes Chief Executive Officer Peder Holk Nielsen said, "As the world population grows at tremendous pace over the next decades, we need to significantly increase the output from our land without increasing the pressure on the environment. Today, we forge a game-changing alliance with the potential to transform global agriculture. The combined capabilities of Novozymes and Monsanto create an innovation powerhouse with a unique opportunity and approach to unleash the transformational opportunity in naturally derived microbial solutions in agriculture."

Monsanto Chief Technology Officer Dr Robb Fraley added, "Just as Monsanto has done with leadership investments in our precision agriculture platform, we see this collaboration as being the same type of catalyst for taking our biologicals work from a technology to a full-fledged platform that represents the next layer of opportunity for growers to drive yield and productivity while helping the preservation of finite natural resources in our precious planet."

The deal is said to be subject to national antitrust authorities' approval and will most likely to be finalized before early next year. Novozymes said the cooperation will not affect its results for 2013, but will provide a positive contribution to its earnings before income and tax next year.