The purchase of all shares in Feltrin Ltda by Syngenta Seeds Ltda was approved by the Administrative Council for Economic Defense (Cade). The deal had been informed by Cultivar Magazine on 20/02/2023.
After various initial information, the companies pointed out that the business generates horizontal overlaps in the production and marketing markets for vegetable seeds in: zucchini, lettuce, broccoli, carrots, chicory, cauliflower, fresh peas, beans, watermelon, melon, corn sweet, cucumber, peppers, cabbage and tomatoes.
The companies' combined share is less than 20% in the seed markets for: zucchini, lettuce, carrots, chicory, cauliflower, beans, melon, cucumber and cabbage.
On the other hand, their combination exceeds this level in the seeds of: broccoli (40 to 50%), fresh peas (80 to 90%), watermelon (50 to 60%), sweet corn (80 to 90%), peppers (20 to 30%) and tomatoes (20 to 30%). However, in these markets, the large share belongs to Syngenta individually. This leaves the question about the Chinese company's objective with the acquisition in the air.
In any case, Cade's opinion states that: "in all cases, it was observed that there is sufficient market discipline – whether due to competitor rivalry or vegetable imports (in this case, peas) – to prevent eventual abuse of dominant position".
The companies also pointed out a vertical relationship between the vegetable seeds produced and sold by Feltrin and the seed treatment products from the Syngenta Group, which has three pesticides applicable to vegetable seeds: (a) Avicta (abamectin); (b) Maxim (fludioxonil); and (c) Tecto SC (thiabendazole).
In this case, Cade's reviewer concluded that: "the volume of seeds produced by Feltrin is equivalent to less than 3% of the total volume of vegetable seeds subject to treatment in Brazil [...]. Therefore, even if it is considered that Feltrin seeds will be fully treated with Syngenta products, manufacturers of seed treatment products will continue to have access to more than 90% of the market for seeds that can be treated [...]".
Considering this situation, Cade's reviewer recommended approval of the deal without restrictions.
The opinion was signed electronically by:
• "[...] Alexandre Barreto de Souza, General Superintendent, on 18/05/2023, at 17:56 [...]";
• "[...] Priscilla Craveiro da Costa Campos, Specialist in Public Policies and Government Management, on 19/05/2023, at 08:43 [...]";
• "[...] Diogo Thomson de Andrade, Deputy Superintendent, on 19/05/2023, at 13:14 pm [...]";
• "[...] Danielle Kineipp de Souza, Coordinator, on 19/05/2023, at 17:06 [...]";
• "[...] Alden Caribé de Sousa, General Coordinator, on 19/05/2023, at 18:26 [...]".
In turn, order SG nº 654/2023 was "signed electronically by Alexandre Barreto de Souza, General Superintendent, on 18/05/2023, at 17:56 [...]" and published in the Official Gazette on 19/ 05/2023.
Syngenta, resulting from the merger of the agricultural areas of Novartis and AstraZeneca in 2000, ultimately belongs to the Chinese State (China). The chain of companies, from the "daughter" to the "mother" is: (a) Syngenta; (b) China National Chemical Corporation Limited (ChemChina); (c) Sinochem Holdings Corporation Limited (Sinochem Holdings); and (d) State-owned Assets Supervision and Administration Commission of the State Council (SASAC).
On its website, SASAC reports: "the State Council Heritage Supervision and Administration Commission (SASAC) is an institution directly under the management of the State Council. It is an ad hoc organization at ministerial level directly subordinate to the State Council The SASAC Party Committee carries out the responsibilities mandated by the Central Committee of the Chinese Communist Party."
The same SASAC owns Pirelli, Societá Produttori Sementi S.P.A. and GB Biosciences LLC.
In Brazil, Syngenta Group owns shares or shares in the following legal entities: Adama; Agricur Agricultural Defensives; Agro Jangada; Campo Limpo Reciclagem e Transformação de Plástico S.A.; Dipagro Ltda.; Nutrade Comercial Exportadora; Sinochem Agro do Brasil; Syngenta Comercial Agrícola; Syngenta Digital; Syngenta Crop Protection; Syngenta Seeds; Valagro Brazil Manufacturing Fertilizer Industry and Commerce.
Feltrin Sementes Ltda., headquartered in Farroupilha (RS), part of the Feltrin Group, operates in genetic improvement, production and marketing of vegetable, flower and herb seeds throughout Brazil and abroad. The company Feltrin Semillas S.A., which operates in Argentina, is also part of the Feltrin Group.
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