Company - - Feb 03,2017
Chinese state-owned chemical company, ChemChina Co., is set to secure conditional European Union antitrust authorization for its $43bn offer for Syngenta AG.
This agreement involving Swiss pesticides and seeds group, Syngenta, is the largest foreign acquisition by a Chinese company.
The deal is more important for China, the world’s largest agricultural market, which is seeking to secure the supply of food for the country’s massive population. It is believed that, Syngenta AG’s portfolio of top-tier chemicals and patent-protected seeds would accelerate its potential output.
The Chinese stat-owned corporation has agreed to minor concessions to allay to the European Commission’s worries over its takeover of the world’s largest pesticides maker. The watchdogs had been concerned that the agreement may lead to higher charges and fewer selection for farmers.
According to the source, ChemChina will divest a couple of national product registrations, covering current products and a few in the pipeline, in more than a dozen European Union countries.
He further added that the products are normally from ChemChina unit and Israeli crop protection company Adama Agricultural Solutions Ltd., while a few are from Syngenta AG. ChemChina’s subsidiaries company, Adama is the biggest dealer of generic crop protection products in Europe.
European Commission spokesperson Ricardo Cardoso fully declined to comment on this matter. The producer of agrochemicals and seeds, Syngenta AG stated that it has not been informed of any decision by the European Commission.
The source also said that the European Commission may declare its approval next month, ahead of its scheduled 12 April deadline.
The shares of Syngenta AG were up 0.45$ higher at 426.4 francs in late trade. The agreement has already been approved by a United States national security board.