U.S. Gov Panel Reviewing ChemChina's $43B Acquisition Of Syngenta Now To Include Department Of Agriculture
Shares of Syngenta AG (ADR) (NYSE: SYT) were trading lower by around 1 percent early Tuesday morning after Reuters reported that the company's pending $43 billion acquisition by ChemChina will receive additional scrutiny.
Reuters, citing "people familiar with the matter," stated that the U.S. Department of Agriculture (USDA) will also take part in a government panel reviewing the China-based state controlled firm's acquisition of the Swiss seeds and pesticide maker.
Reuters noted lawmakers wrote to Treasury Secretary Jacob Lew in March to request the addition of the USDA to the panel to review any potential impact the transaction would have on domestic food security.
Lew is also head of the Committee on Foreign Investment in the United States (CFIUS), which is responsible for reviewing business deals that could have national security implications.
Reuters added that the USDA's role has yet to be publicly disclosed.
"By law, information filed with CFIUS may not be disclosed by CFIUS to the public," a Treasury spokesperson told Reuters when asked to comment on the USDA's addition to the panel. "Accordingly, the department does not comment on information relating to specific CFIUS cases, including whether or not certain parties have filed notices for review."
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