The National Commission for the Defence of Competition (CNDC) recommended the Secretariat of Trade to approve the acquisition of Nidera Seeds Argentina by Syngenta Crop Protection, within the terms of section 14 of Act No. 27.442 – also called the Competition Defence Act- and to accept the deconcentration proposed by Syngenta as an undertaking.
This commitment avoids a dominant position in development, production and trade of sunflower seeds in Argentina, whereas the original transaction would imply a market share of more than 60%.
Through the deconcentration, Syngenta divests the following assets, all linked to the sunflower seeds market:
- the germplasm bank acquired from Nidera, locally adapted at all stages - pre-commercial and commercial lines for use in Argentina - which includes five commercial hybrids focused on the local market (Paraíso 102 CL, Paraíso 1600 CL Plus, Paraíso 1500 CL PLHO, Aromo 105CL, Paraíso 1800 CL PLUS) and one pre-commercial hybrid (RN284851).
- the inventory of the commercial hybrid seeds Paraíso 1800 CL PLUS (SN33057), existing on June 24th 2022;
- the inventory of all commercial hybrid seeds comprised by the germplasm not traded by Nidera by February 2023;
- the inventory of parent seeds to produce Paraíso 102 CL, Paraíso 1600 CL Plus, Paraíso 1500 CL PLHO, Aromo 105 CL and Paraíso 1800 CL PLUS (SN33057) existing on June 24th 2022;
- the germplasm know-how which includes pedigrees, tests and reproduction historical data (including production yield and quality performance), production research formulas (plant densities, fertilisation, planting divisions, percentage of males and females), behaviour of parents and hybrids under different circumstances, crossing of lines within the germplasm bank, etc.
- germplasm intellectual property;
- trademarks Super Paraíso and the commercial name Aromo.
The company acquiring the mentioned assets is Nuseed Global Innovation Ltd., in Argentina as known as Nuseed S.A. This company works actively in research and development (particularly of sunflower and sorghum), as well as in production and commercialisation (particularly of sunflower, sorghum, corn, carinata, millet and rapeseed).
The CNDC has considered that the business unit offered by Syngenta contains all the necessary components for Nuseed S.A. to be a vigorous and effective competitor to the combined entity, so that the level of competition in the sunflower seeds market is maintained.
The proposed remedy eliminates the risks identified by the CNDC in its objection report, particularly those related to potential unilateral conducts and/or those arising as a result of the notified transaction, improving, thus, the competitive situation in the sunflower seeds market.