CADE opinion approves the purchase of Stoller by Corteva

In an opinion, CADE approved the purchase of Stoller by Corteva today (5/1/22). The document was signed by the General Superintendent, Alexandre Barreto de Souza, on 05/01/2023, at 19:36 pm; and by the General Coordinator, Ednei Nascimento da Silva, on 05/01/2023, at 19:59 pm.

According to the opinion, there are "horizontal overlaps in the segments of biological products, adjuvants and oils". Therefore, the most careful assessment falls on them.

Regarding the organic products market, the opinion expresses that "the definition of the relevant market was left open in the cases previously analyzed by Cade, with a greater focus on the commercialization and distribution of these products".

The overlap between Corteva and Stoller in this market would be restricted to nitrogen fixers and bionematicides.

Regarding nitrogen fixers, Stoller has the products: MasterFix Dual Force, MasterFix Soja, Masterfix L Soja, Masterfix Premier and Masterfix Gramineas. Corteva, in turn, does not produce nitrogen fixers. Sells third-party products that could not be considered direct competitors to those offered by Stoller.

As for bionematicides, Stoller offers the Rizotec product. Corteva does not produce them. Only resell those purchased from third parties. Just over a year ago, Corteva signed a distribution agreement for Simbiose's Inlayon and Inlayon Eco products. Its sales began in January 2022. Corteva also sells the bionematicide Lumialza, from Sumitomo Chemical.

Therefore, the experts understand, the combined share of Corteva and Stoller in the nitrogen fixers and bionematicides market would be less than 20%. Therefore, a dominant position could not be assumed.

Moving on to adjuvants and oils, agents from the federal agency understand that the combined participation of Corteva and Stoller would also be below 20%.

Therefore, they conclude, "the Operation does not have the capacity to cause harm to the competitive environment, falling within the summary procedure hypothesis of article 8, item III, of Resolution nº 33/22".

Finally, public agents understood that the non-competition clauses are in accordance with CADE's understanding.

Chronology of Corteva's purchase of Stoller:

• 30/11/2022 - business advertisement;

• 13/12/2022 - operation protocol at CADE;

• 30/12/2022 - publication in Official Gazette;

• 05/01/2022 - Opinion No. 7/2023/CGAA5/SGA1/SG and SG Order No. 37/2023;

• 06/01/2022 - economist Danielle Pinto Vieira Costa signs the opinion (at 08:51 am); and Order SG 37 is published Electronic Service Bulletin (at 10:14:45);

• 09/01/2022 - order published in the Official Gazette of the Union (section 1, p. 23).