1. Mergers and Acquisitions: Implications for Developing countries
Carl Pray

2. Mergers and Acquisitions – Further evolution?
Syngenta ChemChina –
ChemChina and SinoChem discussing merger into the world’s biggest chemical company worth $120 billion (Reuters, May 23, 2017)
DuPont Dow –
Divesting DuPont’s pesticides to FMC
Monsanto Bayer
Will divestitures be required? Cotton seed/biotech business in US?

3. Impact on biotech research and innovation?
R&D expenditure:
DuPont–Dow and Monsanto-Bayer likely to decline from pre-merger levels due to cost savings
Syngenta–ChemChina: R&D could be more than it would have been if Syngenta had stayed independent (experience with Makhteshim)
Small companies and start-ups – big companies &venture capitalists provide money for R&D
Innovation?
Synergies between DuPont-Dow and Monsanto-Bayer could increase innovation in Asia and Latin America
Chinese government could open up market for GM traits but ownership of Syngenta by $120 billion diversified chemical company could reduce agricultural innovation

4. Impact in China due to purchase of Syngenta by ChemChina
Gradual increase of Syngenta sales and research in China
Syngenta will be allow to conduct biotech and plant breeding research in China
Purchase of Israeli generic pesticide company was followed by increased R&D after purchase
Pesticide prices may rise along with quality of pesticides
Will expand its market of pesticides and seeds (rice and vegetables) in China
GMO sales?

5. Most impact on Brazilian markets
Most impact on Brazilian markets? GM Traits 2015, Concentration increases but prices negotiated.
Soybean
Maize
Cotton
Bean
Eucalyptus
Monsanto 2 9 6 -
Dow 1 4
Syngenta 7
Bayer 5
Basf
DuPont 11
Embrapa
Futuragene

6. Brazil Maize Market 1997 % 1999 2012/13 Agroceres (Brazilian) 26
1997 %
1999
2012/13
Agroceres (Brazilian) 26
Cargill
Braskalb/Dekalb 8
Monsanto 60 36
Pioneer 14 33
Syngenta 11 10
Dow 5 17
Others 15 4

7. Brazil Soybean Seed Market

8. Indian seed market: little impact based on 2013 market

9. Indian Pesticide Market Shares 2013-14
Market share of MNCs
Key MNCs in the market & market share
36% of domestic market sales
Bayer (11%);
Syngenta(9%);
Cheminova(4%);
Dow Agro(5%); BASF(3%);
Monsanto(2%);
Dupont(1%) and
Isagro(1%)

10. Impact on China, India and Brazil
Research and innovation of MNCs in these countries
Research down – rationalize their global research programs
Innovations up if research more efficient
Expand markets in developing countries in general?
Have to because markets in developed countries are stagnant.
Industry structure – more concentration in marketing? more market and political power? High prices?