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ChemChina considered “suicide acquisition”, former official questioning Syngenta acquisition
Apr. 26, 2016
In February 2016, a nearly Yuan 300 billion acquisition agreement was reached between ChemChina and Syngenta, which is a historic record of China’s overseas acquisition. Right after the disclosure of the information, non-stop discussions and disputes were aroused within the industry on the issues of production innovation, food safety and the strategic development of Chinese agriculture.
Recently a jointly signed open letter headed by Qin Zhongda, the former minister of the once ministry of chemical industry, was submitted to the State Owned Assets Supervision and Administration Commission of Chinese central government to question the Syngenta acquisition, which draws the acquisition to a serious public attention.
Syngenta is a worldwide prime GM seed and pesticide vendor, its product and business were attacked by the open letter, which is affixed with the signature of Qin Zhongda. The main idea expressed by the letter is that China should reject GM product and applications of hazardous pesticide. In the letter, the danger of GM crops and pesticides like paraquat, atrazine and dicamba is much rendered while Syngenta is depicted as a notorious and worth-nothing company that is cheating on government supervisory body and the public.
Furthermore, the letter holds the view that Monsanto’s previous bid for acquisition of Syngenta was a false bid, which is a conspiracy jack up the selling price of Syngenta. The letter described the acquisition in words like “suicide acquisition which harms a nation”, having asked for Chinese people and peoples of the world to oppose to the acquisition. The letter has evoked nation-wide repercussions among people who are concerned about health and environment, especially among the anti-GM group. The open letter has been speedily and widely circulated on internet.
ChemChina’s acquisition of Syngenta has not only caused echoes in China, but has also attracted attentions from the USA across the Pacifica. Syngenta’s biotechnical business unit is located in the USA, which is a GM seed giant in the US and world market. In March this year, a very influential US congressman expressed concerns over ChemChina’s acquisition of Syngenta, which might enable Chinese government to obtain the ownership of key sections of US agricultural infrastructure.
However among the industry, ChemChina’s acquisition of Syngenta is regarded as a strategic acquisition, which is nothing wrong. In the eye of GMO supporters, to extend GM applications is an irresistible trend of agricultural development. GMO industry people believe that difficulties experienced in the course of development may not change the orientation of development of the times.
On the 7th April, Chinese Ministry of Commerce held a press media, commenting on the acquisition. The spokesperson Shen Danyang of the Ministry, said that ChemChina’s acquisition of Syngenta is no more than a business activity in international investment; the acquisition is so far in its process, the Ministry is paying close attention to the progress of the acquisition. Shen Danyang expressed the wish of Chinese government to enhance exchanges with partner countries to strengthen mutual understanding and to create a favorable external environment for international business investment activities of enterprises of both countries.
Source: AgroNews
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