Jurisdiction - India
India – CCI Approved The Purchase Of Cheminova By Auriga.

17 March, 2015


On February 2, 2015, CCI approved the proposed combination between FMC Corporation (‘FMC’) and Auriga Industries A/S (‘Auriga’). The notice was filed pursuant to execution of share purchase agreement between FMC and Auriga (collectively referred as the ‘Parties’). The transaction involved the purchase of the entire issued and outstanding share capital of Cheminove A/S (‘Cheminova’), a wholly owned subsidiary of Auriga, by FMC either directly or through a wholly owned subsidiary.

FMC, a company listed on New York Stock Exchange and Chicago Stock Exchange, operates in three broad business segments in India, namely, agricultural solutions, health and nutrition; and minerals, through its subsidiary FMC India Pvt. Ltd. (‘FMC India’). Cheminova, incorporated and registered under the laws of Denmark, is engaged in the business of agrochemical products, intermediates, plant growth regulators (‘PGRs’), micro-nutrients used in agriculture etc. Cheminova’s subsidiary Cheminova India Limited (‘Cheminova India’) is engaged in agrochemicals, intermediaries and technical grade products used in manufacturing of formulated agrochemical products.

CCI observed that the proposed combination related to agrochemical products, namely insecticides, herbicides, fungicides and PGRs. Further, such agrochemical products are normally sub-divided based on, (i) end use (due to distinct types of target pests) and application; (ii) industrial classification; and (iii) consumer preferences.

CCI observed that none of the formulations manufactured by FMC and Cheminova were identical in terms of chemical composition. Further, in cases where such formulations may be considered substitutable in terms of their application and use, CCI noted that the incrementalmarket share resulting from the proposed combination was insignificant or other substitutes of competitors are available for each category (in terms of use). CCI also noted that a majority of formulations of FMC and Cheminova were generic formulations and other players in the market were free to manufacture and sell such formulations. Further, the market for agrochemical products in India was characterized by the presence of a large number of domestic and multinational players such as Bayer, Syngenta, BASF, Dow Agro Sciences, DuPont etc. Besides these large players, a large number of smaller competitors too operated in this market.

In addition, CCI recognized that there was no vertical relationship between the Parties except a supply agreement pursuant to which Cheminova India purchases one of the FMC India’s products and sells it under their brand name. However, this vertical relationship between the parties was not likely to raise any competition concern.

Accordingly, CCI held that the proposed combination is not likely to have any AAEC and approved the transaction.



For further information, please contact:


Zia Mody, AZB & Partners
[email protected]


Abhijit Joshi, AZB & Partners 
[email protected]

Shuva Mandal, AZB & Partners 
[email protected]


Samir Gandhi, AZB & Partners
[email protected]

Percy Billimoria, AZB & Partners 
[email protected]


Aditya Bhat, AZB & Partners 
[email protected]

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