In its long-form merger filing, Crystal informed the Competition Commission of India of overlaps in the agrochemical markets.
US-based FMC Corporation's planned exit from India's crop protection market will require an in-depth antitrust review after the domestic acquirer, Crystal Crop Protection, filed a long-form merger notification with the Competition Commission of India, or CCI, citing overlaps between the parties' agrochemical businesses.
Crystal has sought approval under Form II of the Competition Commission of India (Combinations) Regulations for its proposed acquisition of FMC's commercial crop protection business in India. Parties typically opt for the long-form filing where a transaction involves significant horizontal or vertical overlaps requiring a more detailed competitive assessment.
In its three-page merger filing, Crystal told the CCI that although both parties are present in the Indian agrochemical sector, the transaction will not result in any material change to the competitive landscape nor cause any appreciable adverse effect on competition in any relevant market in India.
Under the agreement announced by the companies, Crystal will acquire FMC's commercial crop protection business in India for $252 million. The transaction, announced on May 7 and filed with the regulator in June, is expected to close by the end of 2026, subject to regulatory approvals, including clearance from the CCI.
The parties identified overlaps across the manufacture and sale of herbicides, insecticides, fungicides, seed treatment products and plant health and nutrition products. They also disclosed potential vertical links between active ingredient supply and crop protection products, as well as complementary activities in seeds. The parties said that their combined market shares remain modest and argued the transaction would not raise competition concerns given the presence of numerous domestic and global competitors.
The acquisition would strengthen Crystal's position in India's crop protection sector by adding FMC India's product portfolio, distribution network and customer relationships. Crystal will also obtain rights to market FMC's products in India and gain preferred access to FMC's future pipeline of crop protection technologies under a long-term commercial arrangement.
For FMC, the transaction represents a strategic withdrawal from India's commercial crop protection business as the company seeks to reduce debt through asset sales. FMC said the entire cash consideration will be used to pay down borrowings, consistent with a divestment strategy first announced in July 2025.
The sale follows increased competitive pressure in India's crop protection market after FMC lost exclusivity over chlorantraniliprole, the active ingredient used in its flagship insecticide brands. Following litigation with Hyderabad-based NATCO Pharma, Indian manufacturers were able to introduce generic versions of the product, increasing price competition in one of FMC's most significant markets. Last year, the global agrochemical giant tried to block Natco from manufacturing an intermediate compound used in its Cyantraniliprole insecticide.
Despite exiting commercial operations, FMC will retain its research and development centres and manufacturing facilities in India. Announcing the sale of the India business, Pierre Brondeau, FMC chairman, chief executive officer and president said that the company remains committed to India and will continue to conduct global R&D activities and maintain global manufacturing operations in the country.
Under the proposed arrangement, FMC will continue supplying active ingredients and technologies to Crystal through a preferred manufacturing and supply agreement while shifting responsibility for domestic marketing and distribution to the Indian company.
Source: MLex
