The CCI has put up the proposed merger of Canadian firms, Agrium and PotashCorp, for public scrutiny after finding that the deal could adversely impact competition.
This is the second time in less than a week that the Competition Commission of India (CCI) has sought public scrutiny of a mega deal after the proposed Dow Chemical Company-DuPont transaction.
Agrium Inc and Potash Corporation of Saskatchewan Inc are Canada-based companies. Agrium is a producer of crop nutrients and a direct-to-grower distributor of crop inputs, services, and solutions.
PotashCorp produces and supplies fertilisers and related products.
While both firms do not have a physical presence in India, they are shareholders in Canpotex — which sells potash to Indian purchasers.
PotashCorp also has minority interests in companies — Israel Chemicals Ltd, Sociedad Quimica y Minera de Chile, and Arab Potash Company — which sell potash to Indian purchasers, as per details provided by the companies in a public notice.
In compliance with the CCI directive, the companies have issued a public notice with details about the transaction.
The regulator seeks public scrutiny of combinations where it is of “prima facie” opinion that the deal is likely to have an appreciable adverse effect on competition.
The public notice is part of steps to ensure whether the deal would adversely impact competition in the relevant markets.
Shareholders of two companies had approved the all-stock merger deal in November 2016.
Last week, the watchdog had sought public scrutiny of the proposed combination is between Dow Chemical Company and E I du Pont de Nemours and Company.
Under this deal, both entities would be combined in an all-stock merger. For the deal — which is expected to create the world’s biggest chemical and material firm — the parties had entered into a definitive agreement in December 2015.
DuPont is a leading science and engineering company with presence in various segments, including agriculture, electronics and communications, industrial biosciences and performance chemicals.
Dow Chemicals has interests in diverse areas such as chemicals, plastics, and agricultural products.
Source: Economic Times