Swiss agrochemical giant Syngenta to become Chinese after mega acquisition

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Swiss agrochemical and seed producer Syngenta AG said state-owned China National Chemical Corp had offered to acquire the company for more than $43 billion, the biggest acquisition by a Chinese firm.

Two companies have reached the acquisition deal in which the board of directors of Syngenta unanimously recommended ChemChina’s offer to purchase 100 percent of Syngenta’s equity. The offer price is $465 per share in cash.

“The Board of Directors of Syngenta considers that the proposed transaction respects the interests of all stakeholders and is unanimously recommending the offer to shareholders. There is committed financing for the deal and a strong commitment to pursue regulatory clearances. A Swiss and U.S. tender offer will commence in the coming weeks and the transaction is expected to conclude by the end of the year,” the Swiss company said in a statement.

Syngenta – a major player in agrochemicals and seeds – is proficient in delivering on the sustainability and enhancement of food security in an increasingly interconnected global production chain through its commercial offers.

ChemChina will continue to support Syngenta’s integrity in its operations, management and employees, including keeping its headquarters in Basel, Switzerland. The Chinese giant will further maintain, promote and enhance Syngenta’s reputation by continuing to invest in its leading agricultural solutions and innovation capabilities.

“Syngenta’s existing management will continue to run the company. After closing, a ten-member Board of Directors will be chaired by Ren Jianxin, Chairman of ChemChina, and will include four of the existing Syngenta Board members. ChemChina is committed to maintaining the highest governance standards with a view to an IPO of the business in the years to come,” the statement said.

“In making this offer, ChemChina is recognizing the quality and potential of Syngenta’s business. This includes industry-leading R&D and manufacturing and the quality of our people worldwide. The transaction minimises operational disruption; it is focused on growth globally, specifically in China and other emerging markets, and enables long-term investment in innovation,” said Michel Demaré, Chairman of Syngenta,

“Our vision is not confined to our mutual interests, but will also respond to and maximize the interests of farmers and consumers around the world,” said Ren Jianxin, Chairman of ChemChina.

The transaction will enable further expansion of Syngenta’s presence in emerging markets and notably in China. Syngenta has employed more than 2,000 people in China since it started business in the country in 1998. It has invested $360 million in China since 2000 to compete with established rivals from the United States and Germany.

China National Chemical Corp has been on an acquisition spress under Ren. Last year it invested $7.7 billion into Italy’s Pirelli. This year ChemChina has taken a stake in Mercuria, the commodity trader, and bought German machinery-maker KraussMaffei.

 

 

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