Italian government officials said Prime Minister Mario Draghi blocked Syngenta from purchasing Italian vegetable seed producer Verisem , based on the law "To protect important assets (fixtures) from unwanted foreign purchases".
The Italian State uses the legal regulation called " golden power " to prevent unwanted foreign purchases in sectors considered to be of strategic importance such as telecom, banking and health.
Switzerland-based Syngenta was acquired for US$ 43 billion in 2017 by ChemChina , which folded into Sinochem Holdings Corp earlier this year. According to the information received, the company is said to have offered approximately 200 million Euros ( 232.76 million USD) to acquire Verisem.
Verisem, offered for sale by the US fund Paine Schwarts and Partners ; on their website they describe themselves as a global seed producer with processing facilities in Italy, France and North America.
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Italian agriculture lobby Coldiretti urged Prime Minister Draghi to stop the purchase to be made by Syngenta, arguing that this purchase would shift the strategic balance in control of seeds used in vegetable production to Asia.
The Italian State has used the "golden power" arrangement only 4 times since 2012 to thwart foreign interests in Italy, 2 of which were during Draghi's Prime Ministership.
Prime Minister Draghi, in April, the Chinese company Shenzhen Invenland Holdings Co. Ltd. It also prevented .
The Italian government is also currently investigating the sale of an Italian company that produces high-tech drones for the armed forces to a Chinese investor company.
The Italian State uses its "golden power" to examine numerous such merger agreements to protect national interests.