Competition Bureau does not oppose pesticide manufacturing acquisition

News Release

February 14, 2017 — OTTAWA, ON — Competition Bureau

The Competition Bureau has determined that the proposed acquisition of Syngenta AG (Syngenta) by China National Chemical Corp. (ChemChina), operated in Canada through its subsidiary ADAMA Agricultural Solutions Canada Ltd. (ADAMA), is unlikely to result in a substantial lessening or prevention of competition for the supply of pesticides in Canada.

In conducting its investigation, the Bureau considered the impact of the proposed transaction on diverse types of pesticides, including fungicides, insecticides and herbicides.

Syngenta and ADAMA supply a variety of pesticide products in Canada. During its investigation, the Bureau identified certain products for which both companies currently compete. However, the investigation concluded that, after the transaction, there will remain sufficient competition from existing or new products to constrain prices.

Under the Competition Act, the Bureau has a mandate to review mergers to determine whether they are likely to result in a substantial lessening or prevention of competition.

Quick Facts

  • During its investigation, the Bureau conducted interviews with numerous stakeholders, including agricultural associations, provincial governments, competitors, customers and a variety of professional agronomists.
  • The proposed transaction is also subject to approval by numerous other competition authorities, including the Federal Trade Commission and the European Commission. Each authority reviews the effects of the transaction under its distinct legal framework.

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