WASHINGTON,
March 9, 2016 - Agriculture Secretary Tom Vilsack remains at odds with
ChemChina’s proposed acquisition of Syngenta, but a spokesman for the Swiss
company says the post-acquisition environment could be an improvement over the
status quo.
In
February, Syngenta agreed to a cash proposal from the China
National Chemical Corp. – better known as ChemChina – valued at $43 billion
after lengthy buyout talks with Monsanto fell through. Some have chuckled at
the irony of Syngenta working with a Chinese entity after the company was sued
by plaintiffs alleging to have suffered losses when the Chinese government
started rejecting shipments of corn containing Syngenta’s Agrisure Viptera
trait (MIR 162).
It’s the
broader problem stemming from that incident that gives Vilsack pause about the
deal. Both he and countless others in American agriculture have been calling
for better biotech approval processes in foreign markets, China in particular.
Vilsack told reporters last week that he wants to make sure this deal won’t
result in an inside lane of sorts for Syngenta traits.
“What’s
this going to mean in terms of your regulatory process?” Vilsack said when
asked what he wants to know from ChemChina. “Anybody going to get a home field
advantage here, or are we going to have a level playing field?
“Maybe
they can reassure me,” Vilsack added, “but I think the question at least ought
to be raised, and there ought to be some indication from the company and the
Chinese precisely what is this going to mean.”
Speaking
to reporters at the Commodity Classic in New Orleans, Paul Minehart, Syngenta’s
head of corporate communications for North America, said the company also wants
to see biotechnology “reviewed in a synchronized way and in a science-based
process with predictable timelines.” He said a Chinese entity getting a stake
in biotechnology, with the purchase of Syngenta for example, could be a “step
in the right direction” toward a better approval process.
Overall,
Minehart says he sees the proposal as “a very positive development” that
“preserves choice for farmers and for our retailers.” He said there are some
steps such as shareholder approval and various antitrust review processes
around the world that still need to take place, but said that the deal could be
wrapped up by the end of 2016.
#30
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