In terms of the proposed tie-up, Pioneer would acquire control of Pannar. They are the second and third largest maize seed producers and suppliers in SA, respectively.
The only other significant player in this market is Monsanto SA. Thus the proposed merger would reduce the number of players in this market from three to two, the tribunal noted in its judgment on 14 October 2011.
But the seed companies insist that compelling evidence was provided during the three-week hearing that the transaction would not be anticompetitive.
"...We are committed to increasing agricultural productivity in SA and throughout Africa and firmly believe this partnership would supply farmers with better seed products faster and more efficiently than either Pioneer or Pannar could do on its own," said Pioneer president, Paul Schickler, on Wednesday.
"Pannar has been a family-run business operating in Africa for more than 50 years," said Brian Corbishley, Pannar chairman.
"We are keenly aware of the challenges facing small-scale and commercial farmers in SA and Africa and are confident that this partnership would benefit our customers and our employees by bringing cutting-edge technology and additional research investment to SA."
The Competition Commission, which had initially assessed the intermediate merger, prohibited the transaction in December 2010 on the basis that it would substantially lessen competition in the local maize seed market.
Pioneer intended to expand the two businesses' existing SA research capabilities, making SA one of Pioneer's major research hubs outside the United States in addition to existing hubs in Brazil, China and India.
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
