South African Tribunal Blocks Pioneer/Pannar Seed Merger

On October 17, 2011, the Daily Maverick reported that the Competition Tribunal of South Africa (Tribunal) disapproved, on Friday, October 14, 2011, the proposed merger of US-based Pioneer Hi-Bred International (Pioneer) and Pannar Seed of South Africa (Pannar). No opinion in the case was available on the Tribunal’s website or on other online sources. According to a Business Day report earlier this month, the Competition Commission of South Africa (Commission) argued to the Tribunal that the proposed merger would greatly reduce competition — reducing the number of competing corn seed producers in South Africa from 3 to 2 (Pioneer and Monsanto), raising seed prices as much as 8% and inhibiting new entry into the seed market there.

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