Approving the merger of Bayer and Monsanto in India, the CCI released conditions attached with the approval.
It said the merged entity will follow a policy of non-exclusive licensing of non-selective herbicides or their active ingredient(s).
It will be in the case of launch of new GM or non-GM traits in India that restrict agricultural producers, including farmers, from using specific non-selective herbicide(s) being supplied only by the parties, on a fair, reasonable and non-discriminatory basis.
The CCI order also said that the combined entity is also barred from offering its clients, farmers, distribution channels or its commercial partners, two or more products as a bundle as this may potentially have the effect of exclusion of any competitor.
The commission asked Bayer to divest its glufosinate ammonium (a non-selective herbicide), crop traits of cotton and corn, and hybrid seeds of its vegetables businesses.
It also ordered that Monsanto should divest shareholding in Maharashtra Hybrid Seed Company Limited (26 per cent) to an independent entity. Bayer is also supposed to honour these changes for seven years from culmination of the deal.
Russia, China and European Union have already approved their merger.
EU has stipulated, among other conditions, Bayer will have to exit global field crop seeds businesses such as canola, cotton, and soybean, R&D platform for hybrid wheat, global vegetable seeds business, global glufosinate ammonium business as well as certain glyphosate-based herbicides business in Europe.
Russia’s Federal Anti-monopoly Service (FAS) has also given approval on the condition that Russia be provided modern technologies from Bayer and Monsanto.