The proposed merger in India, analysts say, will be complicated by the existence of more than one group company each of both partners and the distinct role of each entity in the Indian market.

Moreover, while the AHP group's agrochemicals business operates as a separate entity, Monsanto's recent global spinoff plans were aimed at forming two separately traded companies - a life sciences company (including the agricultural, food ingredient and pharma businesses) and a separate chemicals entity.

The AHP group operated through four subsidiaries, Cyanamid India, Wyeth India and John Wyeth and Wyeth India Pvt Ltd (now merged to form the Rs 215 crore pharma company Wyeth Lederle) and a demerged agri productscompany, Cyanamid Agro.

Monsanto, on the other hand, operates through three companies in India - Monsanto India, which is held 100 per cent by Monsanto, USA, Monsanto Enterprises a 100 per subsidiary of Monsanto India and Monsanto Chemicals, a 40 per cent subsidiary of Monsanto, USA. Besides, Monsanto recently acquired a 26 per cent stake in Maharashtra Hybrid Seeds Company (Mahyco). Monsanto has also initiated plans to spin off its Indian industrial chemicals business into a separate company, Solutia, as part of the global restructuring effort. The industrial chemicals business accounts for around 10 per cent of Monsanto Chemicals's turnover of roughly Rs 100 crore.

On the pharmaceuticals front, Monsanto is in negotiations with RPG group company Searle India to forge a joint venture. Monsanto's pharmaceutical arm GD Searle & Co, USA, already has a licensing agreement (now extended till December 31, 1998) with Searle India. Monsanto products account for close to Rs 50 crore of Searle India's turnover. Theexisting alliance, industry sources say, is unlikely to be disturbed given that GD Searle at one time held a significant equity stake in Searle India.

Analysts also say that the merger will not see significant product overlaps in the pharmaceuticals business of both players. Wyeth Lederle's portfolio includes a Hib-menangitis vaccine brand Hibtitter, amoxycillin and tetracycline-based antibiotics, a vitamin B-complex and C therapy and injectible antibiotic Vancoled, besides other anti-acne, female health and anti-filarial products.

GD Searle's global portfolio includes arthritis treatment drug Arthrotecc, calcium channel blockers Calan, anti-insomnia drug Ambien, oral contraceptives Demulen, Norinyl and Tri-norinyl and Synarel for treatment of endometriosis.

In agri products, key Cyanamid Agro brands include Thimet, a systemic insecticide and herbicide brand, Stomp, and Cythion (malathion) while Monsanto Chemicals formulates and markets a range of weedicides for soyabeans, tea and other crops and keybrands include Roundup, Machete and Avadex.

Monsanto has also recently set up a $25 million research and development centre at Bangalore, which would be the hub of its Asian research activities. The merger is expected to expand the role of this unit. This unit will initially focus on genomics, bioinformatics and transformation.