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Grassley, a Republican from Iowa, urged the Federal Trade
Commission, which is reviewing the purchase of Syngenta AG by
the China National Chemical Corp [CNNCC.UL], and the Justice
Department, which is looking at the merger of Dow Chemical Co
and DuPont Co, to coordinate on the two reviews.
"It is important that these transactions not be reviewed in
isolation," wrote Grassley. "I urge the Department of Justice
and the Federal Trade Commission to collaborate, as appropriate,
with input from the Department of Agriculture, in their analysis
of the agricultural biotechnology and seed industry and the
impact of these proposed transactions."
Dow and DuPont said in December that they would combine in an
all-stock merger with plans to then break into three separate
businesses. In February, China's state-owned ChemChina [CNNCC.UL]
made a $43 billion bid for Swiss seeds and pesticides group
Syngenta.
The deals by some of farmers' biggest global suppliers concerned
Grassley, who represents a largely agricultural state.
"I am concerned that the convergence of these proposed
transactions – as well as others currently being discussed –
will have an enhanced adverse impact on competition in the
industry and raise barriers to entry for smaller companies," he
wrote.
"I also am concerned that further concentration in the industry
will impact the price and choice of chemicals and seed for
farmers, which ultimately will impact choice and costs for
consumers. Finally, I am concerned that further consolidation
will diminish critical research and development initiatives,"
added Grassley.
The letter was dated Tuesday and sent to FTC Chairwoman Edith
Ramirez and Renata Hesse, the acting head of the Justice
Department's Antitrust Division.
(Reporting by Diane Bartz; Editing by David Gregorio)
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