AsianScientist (Apr. 19, 2017) – China National Chemical Corporation (ChemChina), a state-owned chemical company that produces agrochemicals, specialty chemicals and industrial equipment, has received European Commission approval for their proposed acquisition of Syngenta AG, a Swiss agribusiness company formed in 2000 by the merger of Novartis Agribusiness and Zeneca Agrochemicals.
Approval of the US$43 billion takeover is a major step towards the closing of the transaction, which is expected to take place in the second quarter of 2017. As part of the approval, ChemChina will divest part of its pesticide business which overlaps with Syngenta.
ChemChina’s acquisition of Syngenta is in line with an industry-wide trend of consolidation. In March 2017, European regulators cleared a US$130 billion merger of industry giants Dow Chemical Co. and DuPont Co. The proposed US$66 billion merger of Bayer AG and Monsanto Co. has yet to receive regulatory approval.
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