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CCI sees Bayer-Monsanto deal impacting competition, starts public scrutiny

Comments on deal, which will create world's largest seeds and pesticides firm, to be submitted in 15 days; CCI may not consider unsubstantiated objections

Sanjeeb Mukherjee & Agencies  |  New Delhi 

Monsanto-Bayer merger: CCI approval may not come so easy

The (CCI) has launched a public scrutiny of the finer details of the proposed $66 billion Bayer-deal, as it feels that prima facie the deal has, or likely to have an major adverse effect on competition.

The Bayer-deal would create the world's largest seeds and pesticide firm.

places a deal for public consultation if it is of the "prima facie opinion that the combination has, or likely to have an appreciable adverse effect on competition".

Prior to this, had launched similar public scrutiny in the case of the Ranbaxy-and Holcim-merger deals, among others.

bayer Monsanto deal Price on BSE in Rs; Compiled by BS Research Bureau

The comments with respect to the Bayer-deal need to be submitted to within 15 days, along with supporting documents on how the merger can adversely impact the concerned person or entity, the competition watchdog said in a public notice.

It further said that "the Commission is not likely to consider unsubstantiated objections".

said in a statement that publication of this form on an acquirer's website is a regular step in a Phase-II investigation in India and does not in any way prejudge the outcome of the Proposed Combination.

continues to fully cooperate with the CCI, while declined to comment on the move.

The deal between Bayer-Monsanto, both of which have strong presence in India, was announced in September 2016.

On September 14, 2016, and entered a definitive agreement and plan of merger under which the entire shareholding of would be acquired by

The share price of Cropscience Ltd, the Indian-listed arm of the global major was quoted at Rs 3,937.4 per share on September 14 while it closed at Rs 4,569.6 per share on Thursday.


In case of India Ltd , the Indian arm of the multinational, the share was quoted at Rs 2,329.3 per unit on September 16 while it closed at Rs 2,499.4 on Thursday.

As a result of the proposed combination, will become a wholly-owned subsidiary of

operates in pharmaceuticals, crop science, consumer health and animal health with a broad range of products in each division. is a sustainable agricultural company engaged in the production of agriculture and vegetable seeds, herbicides/weed control solutions.

As per a notice filed by before the in October 2016, the "proposed combination raises no competitive concern in any of the overlap products".

In India, both entities have presence in production and sale of vegetable seeds, as well as in production and sale of non-selective herbicides, according to that notice.

The parties believe that the proposed combination does not give rise to competition concerns regardless of the manner in which the markets are delineated.

"The parties are engaged in complementary business practices and the proposed combination seeks to capitalise on the synergies arising as a result of the complementaries.

The parties, therefore, believe that it is not necessary to definitely conclude on market definition for the purposes of proposed combination," as per

expects the proposed combination to close by early this year.

First Published: Sat, January 06 2018. 00:42 IST