March 06, 2018
Monsanto-Bayer Merger - Should CCI clear it? Article by MM Sharma
The Competition Commission of India (CCI) is currently examining the Indian leg of the mega merger between Bayer and Monsanto. The proposed acquisition of Monsanto’s entire shareholding by Bayer globally, which brings together two global giants in the seeds and agro-chemical markets, is drawing attention of economists, lawyers and agricultural scientists globally. Like in India, the antitrust authorities in US and EU are currently examining the merger and there is opposition amongst the antitrust experts and economists for justifiable reasons, which also need to be discussed publically in India.
If approved, the merger will lead to tight oligopoly of three multinational giants, (ChemChina-Syngenta, Du Pont-Dow and now Bayer-Monsanto) which will control almost 2/3 of the global production in seeds and agro-chemicals as well as the valuable Big Data and IT platforms. This will not only lead to price rise for seeds and pesticides but also will lead to control of global food value chain as well as direction of the innovative efforts in the next few decades besides increasing the dependence of world (including Indian) agriculture on the three global giants. This should be a wakeup call for any sensitive government.
Should CCI clear this merger? Is the projected merger necessary in order to promote innovation in this sector?
Please read in the full article by Mr. MM Sharma, published in The Economic Times at the following link http://bit.ly/2oPfERe
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