ChemChina Said Near Deal to Buy Syngenta for Record $43 Billion

February 2, 2016 06:45 AM
 
ChemChina Said Near Deal to Buy Syngenta for Record $43 Billion

China National Chemical Corp. is nearing an agreement to buy Swiss pesticide-and-seeds-maker Syngenta AG for about 43.7 billion francs ($42.8 billion) as the state-backed company extends its buying spree with what would be the biggest-ever acquisition by a Chinese firm, said people familiar with the matter.

ChemChina, as the closely held company is known, offered about 470 Swiss francs a share in cash to acquire Syngenta and a deal could be announced as early as Wednesday when the Swiss company reports earnings, the people said, asking not to be named as the details aren’t public. That’s 24 percent higher than Syngenta’s last close of 378.40 francs on Feb. 1.

The deal would help Chairman Ren Jianxin transform ChemChina into the world’s biggest supplier of pesticides and agrochemicals, while snatching an asset coveted by St. Louis- based Monsanto Co. It also underscores the importance China attaches to owning seed and cropcare technology that can boost agricultural output and help feed the world’s biggest population.

A spokesman for ChemChina declined to comment, as did officials at Syngenta. Final talks are ongoing and could still fall apart or be delayed, the people said.

At $43 billion, a successful purchase would be the largest acquisition by a Chinese firm, surpassing China Unicom Hong Kong Ltd.’s $29 billion purchase of China Netcom Group Corp. in 2008.

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Comments

 
Spell Check

g gibson
eleva, WI
2/2/2016 08:57 AM
 

  Seems funny China is buying a company that we farmers are suing and saved them money by lowering the price of corn because they rejected a few loads of corn with a gene that they were accepting along up to that point they decided they had enough .

 
 
Tom k
Eagan, MN
2/2/2016 10:13 AM
 

  This might explain why china was holding back approving Syngenta corn insect traits. I bet Duracade gets chinese approval if this deal goes through. This is not good for the american farmer to have the largest export market also in the corn trait business. I fear they might hold up competing traits for export to china for competitive reasons.

 
 

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