Brussels, Belgium
November 17, 2010

The European Commission has cleared under the EU Merger Regulation the acquisition of the global sunflower seed business of the US company Monsanto by Syngenta of Switzerland.

The notified transaction combines two leading sunflower seed suppliers in Europe, with significant breeding activities.

The decision is conditional upon the divestment of Monsanto’s sunflower hybrids, commercialised or under official trial in Spain and Hungary, as well as the parental lines used in the creation of those hybrids or currently under development for the creation of hybrids for Spain and Hungary.

This is because the in-depth investigation confirmed the Commission's concerns with respect to the commercialisation of sunflower seeds in Spain and Hungary, where the transaction would have removed a considerable and innovative competitor to Syngenta, reinforcing the latter's market leader position.

The transaction also raised concerns with regards to the activities of exchange and licensing of sunflower varieties, insofar as the merging parties would be in a position to restrict the access of competitors to input necessary for the commercialisation of sunflower seeds.

In light of the commitments, the Commission concluded that the transaction would not significantly impede effective competition in the internal market or any substantial part of it.

Website: http://europa.eu

Published: November 17, 2010