Application for negative clearance for acquisition of 60% shareholding in Quton Limited by Maharashtra Hybrid Seeds Company Limited
On 29th August, 2014 the Competition and Fair Trading Commission received an application for authorization of a proposed acquisition of 60% shares in Quton Limited by Maharashtra Hybrid Seeds Company Limited.
The transaction was notified under negative clearance following the preliminary review of information by parties which showed that the transaction may not have serious negative effect on competition in the relevant market. Quton was wholly owned by Seed Co Limited and was involved in breeding, processing and marketing of certified cotton seed; while Maharashtra was a seed company registered in Mauritius with a commitment towards improving the prospects of agriculture through research and technology.
The parties submitted that the acquirer is involved in seed production in India as such it would bring valuable expertise in seed production. The secretariat gathered information from various sources including information provided by the parties in the application and invited views of third parties on the transaction. Investigation established that the acquisition would not change the structure of the cotton seed market as the acquiring firm had no commercial presence in Malawi and the transaction was not likely to have public interest concerns such as job losses.
The Commission authorized the acquisition as it was found that the same may not likely result in substantial lessening of competition in the relevant market. The transaction was approved by the Commission on its 40th Meeting held on 30thOctober, 2014.
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