Cade approves purchase of Biotrigo by GDM

The Administrative Council for Economic Defense (Cade) approved the purchase of the shares of Biotrigo Genética Ltda and Biotrigo Nutrição Animal Ltda by GDM Genética do Brasil SA. The decision may be appealed. The operation was publicized by Cultivar Magazine on 18/09/2023 ("GDM signs agreement to acquire Biotrigo Genética")

According to the opinion that supported the decision, no horizontal or vertical overlaps were identified between the markets in which the companies operate. This way, the hypothesis of market concentration would be ruled out.

The opinion highlighted the federal authority's tradition of distinguishing the seed market by crop. Thus, "whatever the treatment given to the different stages of the production chain for each seed (e.g., genetic improvement; and seed production and marketing), the operation does not generate overlap or vertical integration given that the parties operate on seeds from different cultivars (buyer operates in soybeans and corn and target companies in wheat)".

Therefore, in the opinion of Cade's technicians, the "operation constitutes a mere replacement of an economic agent, thus not requiring a more in-depth analysis of the markets involved".