The pending Dow-Dupont Merger and Syngenta’s purchase by ChemChina have been referred to legislative commissions for review. The Department of Justice and the Federal Trade Commission are conducting the anti-trust review because the two pending transactions would reduce the number of major seed companies from six to five. With the possibility of a third major transaction, the number of market participants could have an even more dramatic impact on farmers and consumers. Both agencies will be seeking input from the Department of Agriculture on the complex and dynamic industry. Not only are there concerns about the impact on competition, but also about the potential to limit the ability of smaller businesses to enter seed and chemical industries. These mergers could also negatively affect the price and choice of chemicals and seeds for farmers, which in turn would affect the price of goods for consumers. Finally, legislators have raised concerns about how this could diminish future critical research and development initiatives.
