June 21, 2018
The Competition Commission of India (CCI) gave a green signal to acquisition of Giant agrochemical company Monsanto Company (Monsanto) by pharmaceutical giant Bayer Aktiengesellschaft (Bayer).
On investigation of the proposed acquisition, the Commission was of the view that the combination is likely to have an appreciable adverse effect on competition in some markets in India as both Parties are vertically integrated agricultural companies and are present in the entire value chain of supply of agricultural inputs like crop protection, seeds and traits, digital farming solutions. The Commission was of the view that the proposed Combination would create one of the largest vertically integrated player in the agricultural market globally.
However, the Commission has stated that aforesaid concern could be addressed by way of modifications to the proposed combination. Accordingly, the Commission approved the proposed combination under Section 31(7) of the Competition Act, 2002, subject to the remedies to be implemented by the parties which can be accessed here.
The Commission has also directed Bayer to disclose, on its Indian websites, all contact details to facilitate the implementation of remedies ordered by the Commission.
Under the provisions of the Competition Act, 2002 no person or enterprise can shall enter into a combination which causes or is likely to cause an appreciable adverse effect on competition (AAEC) in India.