Mar 31, 2016

US Senators call for review of Syngenta acquisition

U.S. Senator Debbie Stabenow (D-MI), ranking member of the U.S. Senate Agriculture Committee, has led a bipartisan letter co-signed by U.S. Senators Chuck Grassley (R-IA), Sherrod Brown (D-OH), and Joni Ernst (R-IA) – members of the Senate Agriculture Committee – calling on the U.S. Department of the Treasury to review China National Chemical Corporation’s (ChemChina) proposed acquisition of Syngenta for any potential effects on U.S. national security and the American food system.

“While this committee has not reached any conclusions regarding the proposed purchase of Syngenta by ChemChina, we believe that any foreign acquisition of an important U.S. agricultural asset should be reviewed closely for potential risks to our food system,” the Senators said. “It is not unreasonable to suggest that shifts in company governance; operational strategy; or financial health—particularly in light of the magnitude of this leveraged transaction—could have consequences for food security, food safety, biosecurity, and the highly competitive U.S. farm sector as a whole.”

The Senators also urged Treasury Secretary Jack Lew to include both the USDA and FDA on the Committee on Foreign Investment in the United States when reviewing foreign acquisitions of major U.S. agriculture assets.

For the full text of the letter to the U.S. Department of Treasury, visit the U.S. Senate Agriculture Committee website.