ChemChina’s proposed $43bn acquisition of Syngenta will not be derailed by Australian competition regulators, who have green-lighted the deal saying it had no competition concerns.
Australia’s Competition and Consumer Commission (ACCC) had been scrutinizing the deal, the biggest ever foreign takeover by a Chinese company, as ChemChina owns a subsidiary, Adama Agricultural Solutions (Adama), which competes with Syngenta in Australia as they both supply crop protection products such as insecticides, herbicides, and fungicides.
However, regulators found there was no concerns, as ChemChina would still face competition from Bayer, BASF, Monsanto, Dow and others.
“The ACCC found that ChemChina would continue to face competition in the supply of crop protection products from a range of proprietary and generic suppliers such as Bayer, BASF, Monsanto, Nufarm, Dow, DuPont, and FMC,” ACCC chairman Rod Sims said.
“Importantly, the ACCC also took into account the complementary nature of the two businesses. Syngenta is focused on research and development to bring new patented chemicals to market. Adama focuses on generic off-patent chemicals.”
“Generic chemicals are more prevalent in Australia than in many other countries, and there is a large number of suppliers. Bringing new generic chemicals to market is often cheaper and quicker in Australia than, for example, in the European Union, due to lower regulatory barriers,” Sims added.
Full Content: Food Ingredients First
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI