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Bayer’s takeover of Monsanto: Indian farmers send their objections to Competition Commission

By - La Via Campesina, January 30, 2018

On 25 January, the Indian Coordination Committee of Farmers Movements (ICCFM), placed on record their objection with the proposed acquisition of Monsanto by the German firm Bayer.

Here is the full text of the letter.


All Indian Coordination Committee of Farmers Movements

Road No. 2, A – 87, Mahipalpur Extension, New Delhi – 110 037, IndiaTel:+91-9899435968 ; Email: yudhvir55@yahoo.com

The Secretary, 25.01.2018

Competition Commission of India,

New Delhi – 110001

Dear Madam/Sir,

Subject: Our objection to the Proposed Combination between Bayer AG and Monsanto and request for extension of 15 days notice for public participation.

We the farmers in India as Individual Farmers, Farmers Groups, Women Farmers, Small farmers, Young Farmers, Farm Workers, Landless Labourers have come together to place on record our objections pertaining to the Notification issued by the Competition Commission of India under Section 29(2) of the Competition Commission Act, 2002, inviting objections/ comments/ suggest with regard to the combination of Two Corporate Giants across the Globe viz, between Bayer AG, Kaiser-Wilhelm-Allee, 51368, Leverkusen, Germany (hereinafter ‘Bayer’ or ‘Acquirer’) and Monsanto Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808, County of New Castle (hereinafter ‘Monsanto’ or ‘Target’, and collectively with Bayer as ‘Parties’).

The signatories hereunder are members of All India Coordination Committee for Farmers’ Movements (ICCFM) and South Indian Coordination Committee for Farmers’ Movements (SICCFM) and we represent 12 farmers’ organizations across India representing millions of peasants, small and medium size farmers, landless people, rural women and youth, indigenous people, migrants and agricultural workers. We defend peasant agriculture for food sovereignty as a way to promote social justice and dignity and strongly oppose corporate driven agriculture that destroys social relations and nature.

We consider that the acquisition of Monsanto by Bayer not only causes but also likely to cause an appreciable adverse effect on competition within India. We request the Commission to call for the records from these two companies regarding their market concentration and study the overall reach of these two companies put together in the market and assess the percentage of their shares objectively and independent of the projections given by the Parties in Form IV, before arriving at any conclusions. The Commission should carry out this investigation to determine the questions whether the acquisition or the combination of these two giant Corporates would cause adverse effect on competition within India.

It is important to place on record the study conducted by the Friends of Earth, Europe led by Ioannis Lianos, Professor of Global Competition Law and Public Policy and Director of the Centre for Law, Economics and Society (CLES) at University College London (UCL),1 concludes that even on a narrow reading of EU competition law, the merger between US-based agro-chemical and biotech company Monsanto and German ‘life science’ company Bayer should not be permitted. The legal study sets out five main reasons why EU competition law requires that the merger be blocked. The copy of the said document is enclosed herewith.

In addition to the issues raised in the said study mentioned supra and the objections submitted by many other individual farmers, farmers organization and farmers collective, we also like to highlight the certain discrepancies in the combination of Bayer and Monsanto as published in the Notification dated 5th January 2018.

In India, Bayer and Monsanto, as per the assertions given by the Parties in Form IV, prior to the closing of the Proposed Combination operate in the 5 Segments in terms of Products, viz, 1. Crop Production, 2. Agricultural Seeds, 3. Vegetable Seeds, 4. Environmental Science and 5. Traits and Technology. The Crop Productions again has 6 Sub Segments, Agricultural Seeds has 5 Sub Segments, Vegetable Seeds has 22 Sub Segments , Environment Science has 5 Sub Segments and Traits and Technology has 1 Sub Segment.

In the Crop Production Segment, both the parties have one Sub Segment overlapping i.e., Non –selective herbicides.

In Agricultural Seeds Segment, both the parties have one Sub Segment overlapping i.e. Cotton Seeds.

In Vegetable Seeds Segments, both the parties have 13 Sub segments overlapping, i.e., Cabbage, Cauliflower, Cucumber, Eggplant, Bitter Gourd, Bottle Gourd, Melon, Okra, Onion, Hot Pepper, Sweet Pepper, Tomato and Watermelon.