Proposed takeovers and mergers will reduce competition within the EU and globally and increase corporate concentration
Genewatch UK has written to the EU Competition Commission to protest against proposed takeovers and mergers in the agribusiness sector – see below.
Others could also protest to the Competition Commission. Contact details are in the letter.
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Open Letter: Takeovers and mergers in the agribusiness sector: need for urgent action
Genewatch UK, 2 Sept 2016
Margrethe Vestager
Competition Commissioner
European Commission
Rue de la Loi / Wetstraat 200
1049 Brussels
Belgium
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2 September 2016
Dear Commissioner
Open Letter: Takeovers and mergers in the agribusiness sector: need for urgent action
I am writing to urge you to investigate the serious negative impacts on competition of proposed takeovers and mergers in the agribusiness sector. It is urgent to consider this from a sectoral perspective, and to take immediate steps to prevent negative impacts on competition.
Proposed takeovers and mergers in this sector include:
* Takeover of Syngenta by China National Chemical Corp. (ChemChina)
* Merger of Monsanto Co. and Bayer AG
* Merger of Dow Chemical Co. and DuPont Co
The proposed takeovers and mergers will reduce competition within the EU and globally and increase corporate concentration in a vital strategic sector, and allow direct and indirect governmental influence beyond what is reasonably acceptable in a supposedly competitive market. Farmers and consumers are highly likely to be negatively impacted by the restricted choice and increased prices for seeds and chemicals associated with monopoly control.
From a sectoral point of view, having three companies dominating local and global seed and chemical supplies, with the ability for easy government interference, is bad for competition, and hence all deals on the table and in the pipeline should be rejected.
I urge you to take urgent action on this matter and to encourage your international partners to do the same.
I look forward to hearing from you,
Dr Helen Wallace
Director, GeneWatch UK
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