US: FTC Approves Final Order with ChemChina and Syngenta
19 Jun 2017 --- Following a public comment period, the US government’s Federal Trade Commission (FTC) has approved a final order settling charges that the proposed merger of China National Chemical Corporation (ChemChina) and Swiss global agricultural company Syngenta AG would harm competition in the American markets for the herbicide paraquat, the insecticide abamectin, and the fungicide chlorothalonil.
First announced in April 2017, the complaint alleged that without the proposed divestiture, the merger would eliminate the direct competition that exists between ChemChina generics subsidiary ADAMA and Syngenta’s branded products.
The merger would also increase the likelihood that US customers buying paraquat, abamectin and chlorothalonil would be forced to pay higher prices or accept reduced service for these products, the complaint states.
The Commission vote approving the final order was 2-0.
Approval by Regulators
ChemChina’s takeover of Syngenta took another step closer to being finalized earlier this year when the acquisition was approved by Chinese regulators. During the first half of 2017 the so-called “mega merger” has been clearing several regulatory hurdles, getting the green light from the Mexican Federal Economic Competition Commission in March.
That followed previous approvals from both the EU and US authorities for the US$43 billion deal on the condition that three products are divested to allay competition concerns.
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