CCI approves the Bayer-Monsanto Acquisition with certain modifications
CCI approves the Bayer-Monsanto Acquisition with certain modifications

CCI has approved Bayer- Monsanto deal, with certain modifications to eliminate AAEC in several relevant markets in India. This US $66 bn deal will make the merged entity World’s largest seed and pesticide entity.

To maintain effective competition, CCI proposed the following modifications that:

(a)  Bayer shall divest glufosinate ammonium (a non-selective herbicide), crop traits of cotton and corn, and hybrid seeds of its vegetables businesses.

(b)  Monsanto should divest shareholding in Maharashtra Hybrid Seed Company Limited (26 per cent) to an independent entity. Bayer is also supposed to honor these changes for seven years from culmination of the deal.

(c)   The combined entity will need to give non-exclusive licensing of its genetically modified (GM) and non-GM traits, currently commercialized in India or to be introduced in the near future on FRAND terms for 7 years.

(d)  They will adopt a policy of non-exclusive licensing of non-selective herbicides or their active ingredient(s) in the case of launch of new GM or non-GM traits in India that restrict agricultural producers including farmers, from using specific non-selective herbicide(s) being supplied only by the parties, on FRAND terms.

(e)  They will grant access on FRAND terms through non-exclusive, non-transferrable, non sub-licensable, royalty bearing licenses, to existing Indian agro-climatic data, to potential Licensees who approach them. They will also grant this access free of charge, to the Central government and its institutions, to be used exclusively for public good.

(f)    They are also barred from offering its clients, farmers, distribution channels or its commercial partners, two or more products as a bundle as this may potentially have the effect of exclusion of any competitor.

For more: https://www.cci.gov.in/sites/default/files/Notice_order_document/Order_14.06.2018.pdf