January 06, 2018
The Competition Commission of India (CCI) in August, 2017 had received a notice filed by German pharmaceutical giant, Bayer Aktiengesellschaft (Bayer) in relation to acquisition of the entire shareholding of American Agrochemical and Biotechnology Corporation, Monsanto Company (Monsanto) by Bayer.
Sections 5 and 6 of Competition Act, 2002 provides for combination (merger/acquisition/amalgamation) and regulation of combinations in India. Under the Act, any person or enterprise which proposes to enter into a combination may give notice to the Commission disclosing the details of the proposed combination. The CCI determines whether the proposed combination would have an appreciable adverse effect on competition within India.
The CCI in its notification states that the proposed combination between Bayer and Monsanto is likely to have an appreciable adverse effect on competition and, accordingly, has directed Bayer, in terms of Section 29(2) of the Competition Act to publish details of the combination for bringing the combination to the knowledge of the public and persons affected or likely to be affected by such combination.
The comments/ suggestions and objections are to be addressed to the Secretary, Competition Commission of India, Hindustan Times House, 7th Floor, 18-20, Kasturba Gandhi Marg, New Delhi – 110001 or through email: [email protected], within fifteen working days from the date of publication of details of the proposed combination.
Section 6 of the Competition Act prohibits any person or enterprise from entering into a combination which causes or is likely to cause an appreciable adverse effect on competition within the relevant market in India and such a combination shall be void.