INDEPENDENT NEWS

Commission grants clearance to DLF Seeds to acquire PGG

Published: Wed 13 Feb 2019 05:15 PM
The Commerce Commission has granted clearance to global seed producer DLF Seeds A/S to acquire the New Zealand market leader in forage and turf seeds, PGG Wrightson Seeds.
In considering the acquisition, the Commission focused primarily on the effects on the production and supply of ryegrass seeds, in particular those containing novel endophytes. An endophyte is a fungus which grows in a symbiotic relationship with the grass, making it more resilient to certain pests.
Deputy Chair Sue Begg said the Commission was satisfied the acquisition would not be likely to substantially lessen competition in any of the markets it assessed.
“DLF is not at present a close competitor of PGG Wrightson Seeds in respect of ryegrass seeds containing endophytes, and is unlikely to be so in the future,” Ms Begg said.
“Further, the merged entity would continue to be constrained by Barenbrug Agriseeds, and a number of smaller competitors.”
A copy of the Commission’s full reasons for granting clearance will be available on the case register in due course.
Background
DLF is a Danish company owned by a cooperative of Danish grass-seed farmers, dealing in forage and amenity seeds, and other crops. It operates either directly or through its subsidiaries in 20 countries around the globe. DLF began operations in New Zealand in 2004.
PGG Wrightson Seeds is a New Zealand company formed in 1990. It is wholly owned by PGG Wrightson Limited (NZX:PGW). PGW Seeds is one of the largest proprietary seed companies in the southern hemisphere, servicing New Zealand and global markets.
Merger clearance process
Further information explaining how the Commission assesses a merger application is available on our website.

Next in Business, Science, and Tech

Australian bushfires continue to blaze – Expert Reaction
By: Science Media Centre
Higher retail consumption lifts GDP
By: Statistics New Zealand
Fairer pay with minimum wage rise for quarter of a million
By: New Zealand Government
Tourism and Environment: Pristine, popular... imperilled?
By: Parliamentary Commissioner For The Environment
Gordon Campbell on the Aussie bush fires and Suleimani
By: Gordon Campbell
Bushfire Crisis: Climate Politics Turning Point Aus Needs?
By: The Conversation
Scott Morrison: the bushfires demand a climate policy reboot
By: The Conversation
Incendiary Extinctions: Australian Fires
By: Binoy Kampmark
Aussie bushfire smoke reaches NZ – update 2nd Jan 2020
By: NIWA
2019 NZ's fourth warmest year on record - Expert Reaction
By: Science Media Centre
2019 second hottest year on record, UN confirms
By: UN News
Fossil Fuel Companies Called On To Foot Australia Fires Bill
By: Eoin Higgins
GDP growth reflects a strong economy
By: New Zealand Government
NZ in ‘GDP per person recession’ under Labour
By: New Zealand National Party
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media