WORKING MEETING OF MR. ARTEMIEV WITH BAYER AG MANAGEMENT

26-01-2018 | 14:53

On January 23, 2018, Head of FAS Russia, Mr. Artemiev, had a working meeting with Bayer AG management aimed at discussion of the progress of implementation by company of the conditions determined by FAS Russia upon the results of consideration of the transaction of Bayer AG on acquisition of 100% of the voting shares of Monsanto Company, issued by FAS Russia on November 07, 2017. Also Monsanto Company representatives took part in the meeting.

Let us recall, that in accordance with the decision of FAS Russia, Bayer need to enter into an agreement with HSE, which acts as a center for the techtransfer, whose task is to ensure and monitor the transfer of technologies, data and knowledge by the combined company, including on the basis of a non-exclusive license, in the field of breeding and ensuring non-discriminatory access to digital agronomic platforms. Implementation of this decision is an obligatory condition for approval of the deal.

At the beginning of the meeting, Mr. Artemiev mentioned that despite the fact that the decision made by FAS Russia on this transaction is new for Russian antimonopoly regulation practice, it is in line with the change of approaches to transactions in innovative markets and that have a global character. It also corresponds to the current trends of the development of international competition law in the era of digitalization and strengthening of the role of innovations in the world economy.

Mr. Artemiev informed the participants about the adoption of the Decree of the President of the Russian Federation dated December 21, 2017 No. 618 “On the main areas of competition policy” regarding, among other things, issues of improving antimonopoly regulation in the conditions of the development of the digital economy and its globalization, as well as the legislative initiatives of FAS Russia within the framework of implementation of the decree and related to the control of economic concentration of transactions in the markets with a high innovative component and that are transnational in nature.

The Parties have also discussed the main areas of concern related to implementation of FAS Russia conditions and outlined further steps to resolve them.

One of such issues is the formation, at the stage of concluding a contract with HSE, of a closed list of technologies to be transferred by Bayer in breeding and its obligations in the sphere of digital agriculture. Various possible options that both meet the interests of the company and ensure the achievement of the goal of creating conditions for the development of potential competition in the Russian market were considered.

The Parties expressed their willingness to continue the negotiations process on all the areas of concern in order to reach a mutually acceptable solution.

Mr. Artemiev thanked the company for their openness and willingness to cooperate with the antimonopoly authority.

At the end of the meeting, the Parties agreed on the continuation of an effective dialogue and holding bilateral meetings in the future.