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European Commission investigates sunflower seed deal

22-Jun-2010

Related topics: Legislation

Syngenta’s plan to acquire Monsanto’s sunflower seed business is to come under in depth scrutiny by European competition authorities due to competitive concerns over breeding and commercialisation of seeds and treatment products.

Commission Vice President and Competition Commissioner Joaquin Almunia said: "The sunflower seed industry has undergone important consolidation over the past years and the Commission needs to ensure that effective competition is preserved, to maintain innovation and prevent that input prices for farmers rise."

The transaction did not originally qualify for review under the EU merger regulation as it does not meet the turnover thresholds. However the Spanish and Hungarian authorities which were reviewing it have referred it up to the Commission.

The Commission now has 90 days to make a final decision.