Acquirer(s)
- Monsanto Company
Target(s)
- Delta and Pine Land Company
Market definition
The proposed acquisition was considered in the context of:- the national market for the development and supply of cotton seed; and
- the national market for the development and supply of transgenic traits to seed development and commercialisation companies.
Competition analysis
In relation to potential horizontal concerns in the market for the development and supply of cotton seed, the proposed acquisition represents new entry into the market for the development and supply of cotton seed in Australia, and as such, is unlikely to lessen competition in this market.In relation to potential vertical concerns in the market for the development and supply of transgenic traits to seed development and commercialisation companies, there is unlikely to be a significant foreclosure issue with respect to supply of transgenic traits to cotton seed companies in Australia as the target firm holds less than 10% of the market for the development and supply of cotton seed in Australia.
Accordingly, on 26 February 2007 the ACCC decided that, based on the information before it, the proposed acquisition was unlikely to substantially lessen competition in any relevant market in Australia and advised the parties that the ACCC did not intend to intervene in the proposed acquisition pursuant to section 50 of the Trade Practices Act.
Timeline
| Date | Event |
|---|---|
ACCC commenced review under the Merger Review Process Guidelines. |
|
Closing date for submissions from interested parties. |
|
ACCC decided not to oppose the proposed acquisition. |