CADE to review acquisition of Feltrin and Agrocerrado by Grupo Syngenta

The Administrative Council for Economic Defense (CADE) will review the acquisition of Feltrin and Agrocerrado by Grupo Syngenta. Agrocerrado will be sold to Syngeta Comercial Agrícola and Feltrin will be sold to Syngeta Seels. The tender that advertises the transaction got published in the Federal Official Gazette of Brazil on 1 February 2023.

Grupo Syngenta operates in Brazil and worldwide in the research, development, production, and commercialisation of pesticides, chemical fertilisers, and active ingredients sold separately. On the other hand, Feltrin is in the sector of genetic modification, productio and commercialisation of vegetable seeds worldwide. Agrocerrado is a distributor of pesticides, adjuvants, fertilisers, nematicides, and seeds. It has units located in the state of Minas Gerais, Brazil.

In both cases, Grupo Syngenta stated that the transaction is aligned with their business strategy to be closer to the farmers, supporting them in their necessities and guaranteeing they have access to new technology. For Agrocerrado and Feltrin, the acquisition represents a good business opportunity and helps to focus their resources on other activities.

The time limit for review

According to the legislation, the merger review must take no longer than 240 days. The legal time limit is extendable for up to 90 days upon a reasoned decision by the Tribunal or up to 60 days upon request by the parties.

Mergers can be reviewed as summary cases–when regarded as less complex from a competition point of view–or ordinary–when requiring more in-depth analysis. The assessment of the transactions subject to a summary proceeding must be concluded in 30 days as per Resolution 33/2022.

Access Merger nº 08700.000733/2023-63.