ChemChina offers $43 bn for Syngenta
China National Chemical Corp (ChemChina) today offered $43 billion in an agreed takeover for Swiss pesticide and seed giant Syngenta, in what would be by far the biggest-ever overseas acquisition by a Chinese firm.
The deal is the latest in a string of overseas investments for China’s biggest chemical company, also known as ChemChina, as Beijing prods its companies to “go out” to expand.
Syngenta’s Board recommended the offer of $465 a share, plus a special dividend, to its shareholders, saying in a statement that “the proposed transaction respects the interests of all stakeholders”.
The statement said the deal “will enable further expansion of Syngenta’s presence in emerging markets and notably in China”.
But it could face challenges before going through.
The Swiss company reportedly rejected a higher $47 billion bid from rival Monsanto in August last year, and the US agribusiness giant could come back with a counter offer.
The transaction is also likely to face regulatory hurdles — much of Syngenta’s business is in the US, where a $18.5 billion offer by Chinese state-owned energy company CNOOC for American rival Unocal failed in 2005 in the face of political pressure.