A key U.S. regulator has given the go ahead for the largest ever international takeover by a Chinese firm.
The China National Chemical Corporation is now one step closer to buying the Swiss based agricultural chemical giant Syngenta. The $43 billion all cash deal was given the go ahead by the U.S. Committee on Foreign Investments.
CCTV America’s Nathan King has more.
ChemChina receives US approval for Syngenta buyoutA key US regulator has given the go ahead for the largest ever international takeover by a Chinese firm. CCTV America's Nathan King reports.
In Syngenta’s corporate video the company asked a question: Can we feed 8 billion people by 2030?
And, as China seeks more food security, growing agricultural technology, disease resistant crops and productivity will be key.
Syngenta’s Chairman Michel Demar has said the $43 billion deal will ensure the company can meet future demands
“This transaction will enhance our ability to continue investing in the future, investing in innovation, and come to the market with game changing technology,” Demar said.
The fact that the U.S. regulators now see no national security obstacle to the deal means it is more likely to close by the end of the year. ChemChina said they will keep current management in place.
Syngenta, which was formed in 2000 out of the agribusinesses of Astar Zeneca and Novartis, had sales of over $13 billion in 2015, and employs 28,000 people in 90 countries. It is a big competitor to global seeds giant Monsanto, which had also sought to acquire Syngenta. The other major competitor will be Dow Chemical and Dupont- two U.S. giants which are also in the middle of a merger.
For ChinaChem the acquisition is its largest but not its only international deal – the company acquired famed Italian tire maker Pirelli last year for $7.7 billion and is taking stakes many different sectors in countries from Australia to Germany to the Middle East.