Monsanto Company’s (MON) takeover by Germany’s Bayer could be detrimental to competition, in the opinion of the Brazilian regulator CADE.
A document posted by the General Superintendence of the Administrative Council for Economic Defense said the transaction “generates a significant horizontal concentration, especially in the markets of soybean seeds and transgenic cotton (biotechnology), important cultures to the country’s economy, since it merges two of the main competitors in the world, in an already significantly concentrated scenario and with high entry barriers.”
The merger case was forwarded to CADE’s administrative tribunal, which is responsible for issuing a final decision. The decision could be an approval, a disapproval or the adoption of remedies.
The merger was disclosed on April 20 and CADE is legally due to issue a final decision within 240 days, which can be extended for 90 additional days.