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Probe launched into GM corn safety

The French government on Wednesday asked the country's health watchdog to carry out a probe, possibly leading to EU intervention, after a study said genetically modified corn caused cancer in rats.

Probe launched into GM corn safety
Photo: Kevin Lallier

In a joint statement, Agriculture Minister Stephane Le Foll, Ecology Minister Delphine Batho and Health and Social Affairs Minister Marisol Touraine said they had asked the National Agency for Health Safety (ANSES) to investigate the finding.

"Depending on ANSES's opinion, the government will urge the European authorities to take all necessary measures to protect human and animal health," they said.

"(The measures) could go as far as invoking emergency suspension of imports of NK603 corn to Europe pending a re-examination of this product on the basis of enhanced assessment methods."

Earlier, French scientists led by Gilles-Eric Seralini at the University of Caen in Normandy said a study to be published later Wednesday had found that rats which had been fed with NK603 corn developed tumours.

NK603 is a corn, also called maize, made by US agribusiness giant Monsanto.

It has been engineered to make it resistant to Roundup Ready, a herbicide, thus enabling farmers to douse fields with the weed-killer in a single go.

Genetically modified (GM) crops are widely grown in North America, Brazil and China but are a hot-button issue in Europe, where their introduction has been tightly constrained.

Green groups say the crops could be dangerous to health and the environment, although this claim has so far found no traction in large-scale studies.

In 2009, the European Food Safety Agency (EFA) panel on GM organisms determined that NK603 was "as safe as conventional maize".

"Maize NK603 and derived products are unlikely to have any adverse effect on human and animal health in the context of the intended uses," it said, delivering a judgement based in part on a 90-day feeding study on rats.

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MONSANTO

Bayer buys Monsanto for $66 bn after months-long pursuit

German chemicals giant Bayer said on Wednesday it had signed a $66 billion (€58.8 billion) takeover deal with US seeds and pesticides firm Monsanto.

Bayer buys Monsanto for $66 bn after months-long pursuit
Photo: DPA

“Bayer and Monsanto today announced that they signed a definitive merger agreement under which Bayer will acquire Monsanto for USD 128 per share in an all-cash transaction,” the firms said in a statement.

Bayer repeatedly increased its offer to Monsanto since its first $122-per-share bid, but the US firm had until now held out for more cash.

“This represents a major step forward for our crop science business,” Bayer chief executive Werner Baumann said in the statement.

The two firms said that the deal “brings together two different, but highly complementary” businesses.

Monsanto shareholders still have to approve the deal, as do regulators – with Bayer staking a $2 billion reverse antitrust break fee in case the merger is rejected by US or European authorities.

The deal is expected to be completed by the end of 2017.

Bayer has been pursuing Monsanto since late May, when it made an initial bid of $122 per share (€109), valuing the US genetically modified (GM) crop giant at $62 billion. Monsanto rejected that bid, but said it was “open” to further talks.

Since then the German chemicals behemoth has raised its offer twice, first to $125 per share in July and then to $127.50 last week, but was rebuffed each time.

Mosanto held out for more money, calling the July bid “insufficient”.

The long-mooted tie-up has rung alarms bells for some farmers who fear the power of the combined company in the market for seeds and pesticides, while opponents of genetically-modified food in Europe worry about Monsanto's influence on the continent.

“We do not like this transaction, because we think that Bayer is overpaying significantly,” wrote analyst Peter Spengler of DZ bank on Wednesday before the deal was confirmed.

Monsanto's genetically modified (GM) seed offerings and Climate Corp data analytics offering to farmers would fit in with Bayer's crop protection lines, the firms said in the statement announcing the deal.

The combined group will also emerge with a total research and development budget of €2.5 billion. Added together, Bayer and Monsanto booked sales of €23 billion in 2015.

Bayer said that it expects synergy savings from the merger will allow it to add $1.5 billion to its underlying profit as measured by EBITDA within three years.

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