Considerations For Deciding on Agribusiness Merger Approval

Several mergers through the world of agribusiness are currently being considered by countries throughout the world.

USDA Research Economist Jim MacDonald said most agencies that review these mergers are looking at certain issues.

“The focus would on those chemical or seed markets in which the merger would leave us with a very small number of sellers, anywhere from one to three sellers. Those would be considered to be problematic by the authorities and they would be looking much more closely at those markets either for seeds or for chemicals.”

There can be side agreements, according to MacDonald, that can help spur approval of the mergers and meet the requirements by the International Agencies because,

“It would maintain competition and maintain a certain number of sellers in those important markets.”

Those agreements can include splitting off part of a business to maintain as many sellers and competition in the marketplace as possible.