Brazil presents another hurdle in Monsanto's bid for Syngenta
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.