The Justice Department and Federal Trade Commission ought to collaborate in their review of two major mergers that affect the seed and ag chemical supply, said Senate Judiciary chairman Charles Grassley in a letter to regulators. “It is important that these transactions are not reviewed in isolation,” wrote Grassley, noting that different regulators are handling each of the mergers, Dow-DuPont and ChemChina-Syngenta.
Grassley said an eagle-eyed review is needed “so as to ensure that the multiple proposed transactions under consideration do not substantially lessen competition and aggravate an already concentrated industry.” The Justice Department is in charge of the antitrust review of Dow-DuPont, two U.S. companies, while the FTC is examining the ChemChina-Syngenta merger. ChemChina is owned by the Chinese government and Syngenta is based in Switzerland.
In the letter, Grassley referred indirectly to speculation that Monsanto, the world’s largest seed company, may be part of a merger. Bayer has made unsuccessful offers.