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Considerable effort has been directed towards combating high levels of unemployment in South Africa. Agriculture, particularly smallholder farming, has been identified as having significant potential to address South Africa’s employment crisis and food security challenges.
Historically, the South African maize seed market has been dominated by three major players, namely the two multinationals Pioneer Hi-Bred International Inc. and Monsanto and the local South African company Pannar Seed. In 2010, Pioneer made an offer to acquire Pannar, and subsequently applied to the Competition Commission for approval. The Commission and Tribunal recommended that this merger be prohibited, but on 28 May 2012, the Competition Appeals Court reversed and allowed the merger to proceed with conditions provided by the merging parties.