With state-owned ChemChina prepared to take over Syngenta, one of the largest seed companies in the world, Senate Judiciary chairman Chuck Grassley wants to know if the Chinese company would invoke sovereign immunity against lawsuits in U.S. courts. “If they fail to answer my questions, it ought to raise a big red flag with our regulators checking the antitrust laws against the mergers,” Grassley told reporters according to DTN.
Grassley sent a letter to ChemChina chairman Ren Jianxin, noting that Syngenta has said it would not claim sovereign immunity after the merger. “Would ChemChina be willing to enter into a similar agreement?” asked the letter. DTN said Grassley “also wants to know about Chinese regulatiions for biotechnology and how these will be carried out once Syngenta becomes part of ChemChina.
The ChemChina-Syngenta merger is one of three pending unions that could transform the seed and ag chemical sector. Dow’s chief executive told Bloomberg that a merger with DuPont may be delayed until February because EU regulators are weighing the possible ramifications on competition in seeds and pesticides. Meanwhile, DuPont boosted its profit outlook for 2016 due to higher sales for agricultural products and performance materials, said Dow Jones.