EU Opens In-Depth Probe into ChemChina's Bid for Syngenta
October 28 2016 - 12:28PM
Dow Jones News
By Natalia Drozdiak
BRUSSELS--The European Union's antitrust watchdog will launch an
in-depth probe into China National Chemical Corp.'s plan to buy
Syngenta AG (SYT), to decide whether it would lower competition for
crop-protection products and input chemicals.
"We need to carefully assess whether the proposed merger would
lead to higher prices or a reduced choice for farmers," said EU
Antitrust Chief Margrethe Vestager.
The European Commission, the EU's executive arm, said the
companies had "strong overlapping portfolios" of crop-protection
products such as herbicides and insecticides and the transaction
"would take place in an industry that is already relatively
consolidated."
Friday's announcement from the EU was expected after Swiss seed
and pesticide maker Syngenta said earlier this week that approval
of the deal was likely to be delayed into early 2017, amid a
consolidation wave in the sector.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
(END) Dow Jones Newswires
October 28, 2016 12:13 ET (16:13 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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