DuPont's planned acquisition of South Africa-based Pannar Seed facing new round of opposition as antitrust regulators look to appeal approval of purchase, stop deal
July 3, 2012
(Industry Intelligence Inc.)
– DuPont Co.'s planned acquisition of South Africa-based Pannar Seed Pty Ltd. is facing a new round of opposition as antitrust regulators look to appeal South Africa’s earlier approval of the purchase and stop the deal from occurring, Bloomberg reported July 3.
The Competition Commission, which would be required to pay DuPont’s legal costs under the earlier ruling, has appealed the proposed takeover to the Supreme Court of Appeal, said Competition Commission divisional manager Trudi Makhaya during a phone interview.
If the appeal is successful, Pannar would be able to consider making a deal with a different company, Makhaya added, noting that the Competition Commission has not yet received a response from the two companies in regards to its application.
DuPont Co.’s Pioneer and Pannar intend to continue pursing “their right to implement their partnership” and are aware of the new legal challenge, according to a statement by Pioneer spokesperson Sharyl Sauer.
Bloomber noted that, according to an emailed statement by Syngenta AG spokesperson Daniel Braxton, rival agrochemical and seed company Syngenta is pleased by the Competition Commission’s decision to appeal.
The primary source of this article is Bloomberg, New York, New York, on July 3, 2012.