THE Australian Competition and Consumer Commission (ACCC) has decided it will not oppose DLF Seeds’ proposed acquisition of PGG Wrightson Seeds.
“Following its investigation, the ACCC found that it is unlikely that the proposed acquisition will result in a substantial lessening of competition in any market,” ACCC deputy chair Mick Keogh said.
The ACCC’s investigation focussed on competition in the market for a specialised product in which both companies are active: the market for perennial ryegrass seeds containing fungi, called endophytes.
“The ACCC believes that a combined DLF Seeds/PGG Wrightson Seeds will continue to face competition from remaining suppliers, including large global seed producers such as Heritage Seeds,” Mr Keogh said.
“Most farms which undertake high intensity grazing sow their pastures with a variety of forage grasses, and do not rely solely on perennial ryegrass incorporating novel endophytes.”
The ACCC also assessed whether a reduction in competition would have negative impacts on seed research and development (R&D).
“Seed R&D is a constantly evolving process, and producers continually seek out new ryegrass seed products with improved forage qualities,” Mr Keogh said.
“We did not consider that the proposed acquisition would be likely to lessen competition in R&D aimed at developing new seeds.”
DLF Seeds A/S is a Danish company which deals in forage and turf seeds and other crops. DLF Seeds does not have a business presence or operation in Australia, however its seed products are imported and distributed throughout Australia via third party distributors.
PGG Wrightson Seeds Holdings Limited is a subsidiary of PGG Wrightson Limited, a New Zealand-based public seed company that develops, breeds, and supplies seeds in both Australia and New Zealand, and exports to other international markets.
Further information is available at DLF Seeds’ – proposed acquisition of PGG Wrightson Seeds.