UPDATE 3-Monsanto could take lead role in agchem acquisitions-executives

(Writes through, adds details on China)
By P.J. Huffstutter
ST. LOUIS, Nov 17 (Reuters) - Monsanto (N:MON) Co.
executives are discussing whether they should acquire rivals,
including top pesticide maker Syngenta AG SYNN.VX , company
executives said on Tuesday, as talk of consolidation continues
in the global agrochemical industry.
"We've had conversations inside" about Syngenta and other
agricultural companies, Monsanto President Brett Begemann said
at an investor meeting at its headquarters in St. Louis.
Company executives were studying every possibility for
consolidation in both the seed and agrochemical sectors.
Monsanto's chief executive, Hugh Grant, also speaking at the
investor meeting on Tuesday, said the company is "best placed to
be a leading consolidator or a leading partner in an industry
that is changing."
The world's largest seed company abandoned a $45 billion bid
for rival Syngenta SYNN.VX in August and since then, nearly
all of the major players in the farm chemicals and seeds
business have been the subject of consolidation talk, amid a
landscape of plummeting grain prices and farm income.
Last week, Syngenta rejected a $42 billion offer from
state-owned China National Chemical Corp, Bloomberg
reported. Dupont Co, Dow Chemical Co. and BASF DE
BASFn.DE have also featured in reports of talks on mergers and
acquisitions.
Monsanto's internal discussions, which have been going on
since the company walked away from its latest bid for Syngenta,
include weighing the benefits of bidding for rivals, Begemann
said.
In particular, he said Monsanto is keeping a close eye on
farm chemical product lines it could acquire if rivals merged
their agricultural businesses -- such as Dow Chemical and Dupont
-- and were forced to spin-off assets in order to meet
regulatory approvals.
But Begemann said they were focusing on chemistry, not seed,
assets for such potential acquisitions.
Grant told investors that he considers China an
"opportunity" for Monsanto as rising soybean consumption there
drives demand for growing more beans in the United States and
South America. In addition, he pointed to the potential for new
traits created specifically for China and possibly licensing
those traits.
Grant said any deals would need to be a "strategic fit" for
Monsanto and provide incremental growth.
But he noted that Monsanto does not need to buy or partner
with an agrochemical rival in order to meet its financial
forecasts or growth plans.
The Wall Street Journal has reported that Syngenta has been
talking to Dupont about merging with its agricultural unit,
while Dupont has separately been in talks with Dow Chemical
about its seed and farm chemical division.
Earlier this year, BASF put together loan guarantees for a
prospective bid for Syngenta, several people with the matter
said, but never used the credit facility.
Syngenta, Bayer and Dow could not immediately be reached for
comment on Tuesday. Dupont said it would not comment on rumors
or speculation.
"There are a lot of discussions going on, and only a handful
that will come to fruition in the future," Begemann said.
He said there was "no new news" regarding what Monsanto
might do in terms of a possible offer for Syngenta or any other
agrochemical company. He declined to comment on whether there
had been talks with Bayer.
Begemann said internal discussions had also looked at the
possibility of new partnerships and licensing deals with other
companies. He added that executives and staff routinely talk
with counterparts at other agrochemical companies.
For now, Monsanto is "staying focused on our core business,"
Begemann said. "If an opportunity comes along, we'll look at
that."