Vilmorin sees GMO maize opening in China in wake of Syngenta

Vilmorin & Cie SA

19/10/2017 12:48

* Expects policy shift after ChemChina-Syngenta deal 
    * CEO says could benefit from Syngenta GMO maize licence 
    * S.America among priorities for world's No. 4 seed firm 
 
    PARIS, Oct 19 (Reuters) - Vilmorin  VILM.PA  expects China 
to end a ban on growing genetically modified crops after 
ChemChina's takeover of Syngenta, potentially benefiting 
Vilmorin due to a maize licensing deal it has with Syngenta. 
    State-owned ChemChina completed the takeover of Swiss crop 
seed and chemical group Syngenta earlier this year, one of 
several multi-billion consolidation deals in an agricultural 
supplies sector strained by low crop prices.  urn:newsml:reuters.com:*:nL8N1I70MV 
 urn:newsml:reuters.com:*:nL1N1J90G6 
    Genetically modified organisms (GMO) are a sensitive issue 
in China, like in Europe. Beijing has not approved any varieties 
for cultivation and while it allows imports of GMO crops, the 
approval process can be lengthy.  urn:newsml:reuters.com:*:nL3N1K82HV 
    "As long as China does not have its own technology, they 
will block GMOs (for cultivation)," Emmanuel Rougier, CEO of 
Vilmorin, said during a press presentation. 
    "My bet is that at some point GMOs will be authorised in 
China with Syngenta's technology. The agreement that we signed 
with KWS and Syngenta two years ago gives us access to all 
Syngenta's (GMO maize) technology. So if China opens up, we will 
be one of the few able to sell this technology." 
    The 20-year deal signed with Syngenta gives Vilmorin and 
Germany's KWS  KWSG.DE  the right to use Syngenta's GMO maize 
(corn) traits, both through their U.S. joint venture AgReliant 
and separately in other countries. 
    Vilmorin, the world's fourth-largest seed maker, has a small 
presence in China, mainly focused on a joint venture in maize. 
    Syngenta has played down the transition to becoming part of 
a Chinese state enterprise, stressing it would remain a 
Swiss-based global company. 
    Among other large-scale acquisition deals, Bayer  BAYGn.DE  
is trying to close its planned takeover of Monsanto  MON.N / 
Bayer agreed this month to sell seed and herbicide assets to 
fellow German group BASF  BASFn.DE  to help gain regulatory 
approval for acquiring Monsanto.  urn:newsml:reuters.com:*:nL8N1MO0KM 
    Vilmorin has not considered bidding for any of the assets 
bought by BASF since they did not fit its strategy, Rougier 
said, estimating the deal would make BASF the world's No. 6 seed 
maker by sales. 
    He declined to comment on whether Vilmorin was interested in 
Latin American seed activities that China's COFCO International 
has reportedly put up for sale.  urn:newsml:reuters.com:*:nL4N1LA2K3 
    But he said Vilmorin would continue to consider acquisitions 
and that maize in South America was a priority.  
    Vilmorin announced on Wednesday a sharp rise in annual 
profits, citing continued strong margins for its vegetable seed 
business and a cost saving plan.  urn:newsml:reuters.com:*:nFWN1MT0J8 
     
     
 
 (Reporting by Gus Trompiz; editing by Mark Heinrich) 
 ((gus.trompiz@thomsonreuters.com; +33 1 49 49 52 18; Reuters 
Messaging: gus.trompiz.thomsonreuters.com@reuters.net)) 
 
Keywords: CHINA AGRICULTURE/VILMORIN & CIE