Source: European Parliament
The Commission is fully aware that large-scale agro-industrial mergers may have an adverse impact on competition, small farmers, local cooperatives and sustainability.
These considerations are central to the Commission’s recent merger control investigations in the agricultural sector. For instance, in Case M.11204 Bunge/Viterra, the Commission assessed the effects of increased concentration of oilseed processing capacity in Central Europe, with potential negative effects on farmers.
In Case M.11382 AGCO/Trimble/JV, it assessed an acquisition in precision agriculture systems, which farmers use daily to optimize efficiency, productivity and sustainability of their operations. European farmers were invited to contribute to these investigations and their feedback was integral to the Commission’s analysis.
When necessary, the Commission has taken measures to prevent mergers from harming the EU agricultural sector’s competitiveness. In Case M.11204 Bunge/Viterra, approval was conditional upon the divestment of Viterra’s entire oilseed businesses in Hungary and Poland.
The independence, financial position, expertise and competitiveness of the proposed buyer will also be vetted, ensuring oilseed farmers in Hungary and Poland retain a diversified customer base.
The Commission will continue using all available tools to ensure agro-industrial concentration does not undermine the EU’s agricultural and environmental goals.
It will assess competition effects under the Merger Regulation, prevent distortions caused by third-country financial contributions under the Foreign Subsidies Regulation, and cooperate with Member States screening transactions under the Foreign Direct Investment Regulation.