Brazil presents another hur­dle in Mon­santo's bid for Syn­genta

The Pak Banker - - BUSINESS -

SAO PAULO: Seed gi­ant Mon­santo Co.'s un­wanted takeover bid with Switzer­land's Syn­genta AG would face strong re­sis­tance in Brazil should it go for­ward, farm­ers and lawyers said, a hur­dle that could de­lay or force ma­jor con­ces­sions to the $45 bil­lion deal.

Much of the public fo­cus on the move has re­volved around po­ten­tial an­titrust ques­tions in the United States and the Euro­pean Union, but chal­lenges could also likely arise from emerg­ing agri­cul­tural pow­ers such as Brazil and China.

In par­tic­u­lar Brazil, the sec­ond-largest mar­ket for Mon­santo and Syn­genta, is cru­cial to the fu­ture of both com­pa­nies. As one of the few places in the world with land avail­able to ex­pand farm­ing, Brazil is likely to sur­pass the United States as the world's top soy­bean pro­ducer in the com­ing years, while its trop­i­cal cli­mate makes it an enor­mous pes­ti­cide con­sumer. Brazil's reg­u­la­tor, Cade, could spend up to a year, the max­i­mum time al­lowed, an­a­lyz­ing any po­ten­tial deal, said Mar­cio de Car­valho Sil­veira Bueno, an an­titrust lawyer at Sao Paulo-based TozziniFreire Ad­vo­ga­dos.

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