EUROPEAN COMMISSION DG Competition CASE M.7962 – CHEMCHINA / SYNGENTA (Only the English text is authentic) MERGER PROCEDURE REGULATION (EC) 139/2004 Article 8(2) Regulation (EC) 139/2004 Date: 5.4.2017 This text is made available for information purposes only. A summary of this decision is published in all EU languages in the Official Journal of the European Union. Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets. EUROPEAN COMMISSION Brussels, 5.4.2017 C(2017) 2167 final Public version COMMISSION DECISION of 5.4.2017 declaring a concentration to be compatible with the internal market and the EEA Agreement (Case M.7962 - ChemChina/Syngenta) (Only the English text is authentic) EN EN TABLE OF CONTENTS 1. THE PARTIES ........................................................................................................... 10 2. THE CONCENTRATION ......................................................................................... 11 3. UNION DIMENSION ............................................................................................... 11 4. THE PROCEDURE ................................................................................................... 11 5. FRAMEWORK OF THE ASSESSMENT ................................................................ 12 6. OVERVIEW OF THE CROP PROTECTION INDUSTRY ..................................... 13 6.1. Regulatory framework ............................................................................................... 14 6.2. Overview of the value chain for crop protection products (including Lawn and Garden products) ........................................................................................................ 15 6.3. Overview of the players in the value chain ................................................................ 16 6.3.1. Integrated global R&D players .................................................................................. 17 6.3.2. Other players .............................................................................................................. 18 6.3.3. Consolidation and barriers to entry in the agrochemical value chain ........................ 21 6.4. Distinction between R&D and generic players: Implications for competition .......... 22 7. OVERVIEW OF THE PARTIES' ACTIVITIES ....................................................... 24 7.1. Syngenta ..................................................................................................................... 24 7.1.1. Overview of the activities .......................................................................................... 24 7.1.2. Syngenta is the leading global integrated R&D player .............................................. 24 7.2. Adama ........................................................................................................................ 27 7.2.1. Overview of the activities .......................................................................................... 27 7.2.2. Adama's overall position in the crop protection markets ........................................... 28 7.2.2.1. Introduction ................................................................................................................ 28 7.2.2.2. Product scope and geographic breadth of portfolio ................................................... 29 7.2.2.3. Number of AIs and formulated products registration ................................................ 35 7.2.2.4. R&D, formulation, registration and sales and distribution resources ........................ 36 7.2.2.5. Conclusion.................................................................................................................. 37 7.2.3. ChemChina as a state-owned enterprise .................................................................... 37 8. MARKET DEFINITION ........................................................................................... 39 8.1. Relevant product markets ........................................................................................... 39 8.1.1. Raw materials ............................................................................................................. 39 8.1.1.1. Past decisional practice .............................................................................................. 39 8.1.1.2. The Parties' views ....................................................................................................... 40 8.1.1.3. The Commission's assessment ................................................................................... 40 8.1.2. Active ingredients ...................................................................................................... 40 EN 2 EN 8.1.2.1. Past decisional practice .............................................................................................. 40 8.1.2.2. The Parties' views ....................................................................................................... 40 8.1.2.3. The Commission's assessment ................................................................................... 41 8.1.3. Herbicides .................................................................................................................. 41 8.1.3.1. Past decisional practice .............................................................................................. 41 8.1.3.2. The Parties' views ....................................................................................................... 42 8.1.3.3. The Commission's assessment ................................................................................... 42 8.1.4. Insecticides ................................................................................................................. 44 8.1.4.1. Past decisional practice .............................................................................................. 44 8.1.4.2. The Parties' views ....................................................................................................... 44 8.1.4.3. The Commission's assessment ................................................................................... 44 8.1.5. Fungicides .................................................................................................................. 45 8.1.5.1. Past decisional practice .............................................................................................. 45 8.1.5.2. The Parties' views ....................................................................................................... 45 8.1.5.3. The Commission's assessment ................................................................................... 46 8.1.6. Plant growth regulators .............................................................................................. 46 8.1.6.1. Past decisional practice .............................................................................................. 46 8.1.6.2. The Parties' views ....................................................................................................... 46 8.1.6.3. The Commission's assessment ................................................................................... 46 8.1.7. Seed treatment ............................................................................................................ 47 8.1.7.1. Past decisional practice .............................................................................................. 47 8.1.7.2. The Parties' views ....................................................................................................... 47 8.1.7.3. The Commission's assessment ................................................................................... 47 8.1.8. Post-harvest treatment products ................................................................................. 47 8.1.8.1. The Parties' views ....................................................................................................... 48 8.1.8.2. The Commission's assessment ................................................................................... 48 8.1.9. Nutrients ..................................................................................................................... 48 8.1.9.1. The Parties’ views ...................................................................................................... 48 8.1.9.2. The Commission's assessment ................................................................................... 48 8.1.10. Lawn and Garden products ........................................................................................ 48 8.1.10.1. Past decisional practice .............................................................................................. 48 8.1.10.2. The Parties' views ....................................................................................................... 49 8.1.10.3. The Commission's assessment ................................................................................... 49 8.2. Relevant Geographic Markets .................................................................................... 49 8.2.1. Raw materials ............................................................................................................. 49 EN 3 EN 8.2.1.1. Past decisional practice .............................................................................................. 49 8.2.1.2. The Parties' views ......................................................................................................