Sumitomo Chemical Company Limited - proposed acquisition of a 20% interest in Nufarm Limited
Type of assessment
Informal Review
Reference
39585
Acquirer(s)
Sumitomo Chemical Company Limited
Target(s)
Nufarm Limited
Industry
Crop protection chemicals
Summary
Sumitomo Chemical Company Limited proposed to acquire a 20% interest in Nufarm Limited.
Outcome of assessment
Not opposed
Total review days *
28
Commenced public review
28th January 2010
Date completed
10th March 2010
Market definition
The ACCC assessed the proposed acquisition in respect of the following markets:
- a national market for the supply of procymidone-based fungicides;
- a national market for the supply of clethodim-based herbicides;
- a national market for the supply of organosilicants; and
- a national market for the supply of plant growth regulators.
Competition analysis
The ACCC formed the view that the proposed acquisition is unlikely to substantially lessen competition in the relevant markets. The ACCC considered that the threat of imports is likely to significantly constrain the merged entity. In addition, the ACCC considered that the availability of alternative crop protection products utilising different active ingredients, and the ability of retailers to source supply of these products from alternative suppliers is likely to constrain Sumitomo and Nufarm post-acquisition.
Review timeline
Date
Event
28th January 2010
ACCC commenced review under the Merger Review Process Guidelines.
18th February 2010
Closing date for submissions from interested parties.
10th March 2010
ACCC announced it would not oppose the proposed acquisition.
* Total Review days = Total business days less public holidays and time during which the review was suspended.
