CCI gives Bayer acquisition of Monsanto green light

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The Competition Commission of India (CCI) required Bayer and Monsanto to carry out a combination of structural and behavioural remedies before giving its approval for the merger, according to a legal adviser who worked on the deal.

“The structural remedies involved Bayer divesting its global glufosinate ammonium business along with its seeds business, while Monsanto agreed to divest its 26% stake, along with certain rights, in the Maharashtra Hybrid Seeds Company,” said Naval Chopra, a partner at Shardul Amarchand Mangaldas & Co (SAM), which advised Monsanto.

“With regards to behavioural remedies, CCI required the Bayer-Monsanto combined entity, after the transaction, to commit for a specified timeframe: (1) the licensing of genetically modified (GM) and non-GM traits on fair, reasonable and non-discriminatory (FRAND) terms; (2) provide FRAND access to its current digital agriculture products; (3) ensure non-exclusive distribution channels; and (4) not bundle products that can cause an appreciable adverse effect on competition in India,” Chopra told India Business Law Journal.

The CCI carried out a detailed phase II review on the combination before approving Bayer’s US$63 billion global acquisition of Monsanto. It conducted a comprehensive competitive assessment of various segments vegetable seeds, broad acre seeds, crop protection products, traits licences and digital agriculture solutions offered by the parties. Both parties are present in the segment of production and sale of non-selective herbicides, cotton and vegetable seeds in India.

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