WASHINGTON – Sen. Chuck Grassley sent a letter to Ren Jianxin, Chairman of China National Chemical Corporation (ChemChina), asking him to respond to outstanding questions about his company’s merger with Syngenta.
A recent Judiciary Committee hearing on potential mergers of seed and agrochemical companies identified some areas of concern where antitrust regulators will likely take an even deeper look at the transactions. The proposed deals between Dow and Dupont, Syngenta and ChemChina, and Monsanto and Bayer could result in significant changes for Iowa farmers and consumers.
Following the hearing, witnesses were sent questions for the record according to standard committee practice. Most questions received answers, however, Syngenta declined to answer two questions, instead suggesting that ChemChina provide the information requested. Specifically, these outstanding questions deal with Chinese regulations for seeds and chemicals and foreign sovereign immunity.
ChemChina declined Grassley’s invitation to attend the Judiciary Committee hearing, but Grassley said the company is not precluded from answering questions about their transaction that could have a major impact on U.S. consumers and customers.
“These are important and pertinent questions and we need answers. China, through State Owned Enterprises, has made buying western companies an annual tradition over the last several years. The transactions involve billions of dollars’ worth of market share and intellectual property. Congress has a duty to ensure the Chinese government, and those they place in charge of their government controlled companies, know and respect U.S. laws,” Grassley said.
Read the full text of Grassley’s letter here.
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