Acquirer: Bayer Ag Germany; Target: Aventis CropScience Holding SA

Summary

The Commission formed the view that the acquisition is unlikely to result in a substantial lessening of competition in the relevant market and therefore no further action should be taken.

Market definition

The manufacture and supply of crop protection products as a whole throughout Australia.

Competition analysis

The combined market share post-merger is estimated at 20 per cent, with an estimated CR4 of 64 per cent. This extremely dynamic market enjoys intense competition, low barriers to entry and a high level of substitutability. The majority of active chemical ingredients are imported into Australia. As the principal sources of competitive constraint will not be adversely affected by the acquistion and the degree of market concentration falls below the Commission's thresholds, these factors were considered important in reaching the Commission's conclusion.

Merger type

Horizontal

Guidelines thresholds

Below

Imports above 10%

Yes

Initiation

Parties

ANZSIC code

0169