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ChemChina, Syngenta work to appease EU competition watchdog


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ChemChina, Syngenta work to appease EU competition watchdog

ChemChina and the Swiss pesticides and seeds group Syngenta have confirmed they have responded to concerns by the European Union’s competition watchdog over their merger.

No details have been made public but usually companies offer to sell some assets in areas where they might dominate and also give guarantees over product pricing.

The competition regulator had been focused on the two firms’ overlapping portfolios of herbicides and insecticides which could potentially reduce competition for such products.

The European Commission has extended its review of the $43 billion (40.6 billion euro) deal to April 12.

US and Australian regulators have already approved it.

Adama is key

One person close to the deal told Reuters it was unlikely that state-owned ChemChina would have to sell its Adama Agricultural Solutions Ltd unit. Discussions were focusing on remedying concerns with respect to specific products, some of which Adama may own.

This person said the overall divestments would be less than $500 million (473 million euros).

“It’s about individual products where competition is scarce,” this person said, adding that some of these products were only worth tens of millions of dollars.

“My understanding is that [divestments] are very minor,” another source close to the deal said.

Israel-based Adama makes generic crop protection and pest control products. It is the largest supplier of generic crop protection products in Europe, according to the Commission.

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