SoylentNews is people
SoylentNews
The Committee on Foreign Investment in the United States, a U.S. government committee which assesses the potential effect of foreign investment on that country's security, has given its approval for the proposed purchase of the Swiss seed and chemical manufacturer Syngenta by China National Chemical Corp., also known as ChemChina.
Coverage:
Previously:
ChemChina to Purchase Syngenta For $43 Billion in China's Largest Foreign Acquisition
This discussion has been archived.
No new comments can be posted.
ChemChina-Syngenta Merger Cleared by Regulator, but Still Under DoJ Scrutiny
|
Log In/Create an Account
| Top
| 11 comments
| Search Discussion
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
There *__is* intelligent life on Earth, but I leave for Texas on Monday.
(Score: 2) by dingus on Thursday August 25 2016, @10:43PM
so, an American board has to approve of a sale from a Swiss company to a Chinese firm? Why do they need approval?
(Score: 0) by Anonymous Coward on Thursday August 25 2016, @10:48PM
The EU keeps messing with Microsoft and Google. Why shouldn't the US mess with EU companies?
(Score: 0) by Anonymous Coward on Thursday August 25 2016, @11:02PM
I was going to give a pithy "well, 51% ownership by a US company" or something like that... but a quick online search came up with nothing. So great question... why does the US regulators have any say in this? The only thing I can think of is if they threaten to stop the company from selling to the US entirely, but that doesn't seem to be what is happening.
(Score: 1) by Francis on Friday August 26 2016, @04:51AM
If they're wanting to do business in the US, then they need US regulatory approval. Being outside the US does not exempt corporations from antitrust laws for anything they do within the US.
That being said, let's be honest, this is a rubber stamp. Worst case scenario they'll have to make promises to sweeten the deal and after the deal is approved they just don't follow through on any of it. It's not like those promises have ever been stuck to by other corporations.
(Score: 4, Insightful) by Pherenikos on Thursday August 25 2016, @11:06PM
Considering both Chinese and EU regulators are regularly having to approve mergers between foreign companies which do substantial amounts of business in their respective territories, needing US regulators to sign off on a merger which will have a significant US presences is only natural. If you don't want local regulatory approval divest your local business.
(Score: 2) by dingus on Thursday August 25 2016, @11:21PM
This is a good comment, but FYI Switzerland isn't in the EU. It's in the Schengen Area, which is a much looser agreement.
(Score: 2) by butthurt on Thursday August 25 2016, @11:18PM
I don't understand it either. However, I see that Syngenta does business in the U.S. or has a U.S. subsidiary:
http://www.syngenta-us.com/home.aspx [syngenta-us.com]
Article I of the U.S. constitution says
The Congress shall have power [...] To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes; [...]
which, in practice at least, applies to agribusiness (see Wickard v. Filburn).
Ceasing to do business in the U.S. would be an unpalatable option, because it's a huge market for agrichemicals and such.
As noted in one of the articles, the proposed merger is also subject to approval in other countries. The U.S. has a lot of clout in this matter though.