The Leading Chemical Producer Chemchina and the Swiss Group Syngenta are Going to Merge in JuneApr 11th, 2017
Chinese chemical Corporation ChemChina plans to spend 43 billion dollars to buy the Swiss group Syngenta AG. To do this, in January 2017 ChemChina applied to the U.S. regulator for the approval of the transaction. The American antitrust regulator has recently approved the transaction, and the merger of businesses is expected to be closed in June 2017.
Syngenta AG’s is among the global top ranking agricultural companies, with the division in 90 countries. The major products of the company are fertilisers. The Antimonopoly Commission claimed that the merger of ChemChina and Syngenta AG’s could harm the direct competition at the local market, reduce the quality of the fertilisers production, and impact pricing policy for such pesticides as chlorothalonil, paraquat and abamectin.
Therefore, the Federal Trade Commission required that Syngenta closed down the production of the above-mentioned pesticides. The antimonopoly service of China stipulated the similar demand.
The representatives of Syngenta believe that the U.S. regulator’s approval will speed up the completion of the transaction. From now on the turn to consider the conditions of the merger goes to the European Union. They expect that the decision on the merger will go public on 18 April. In February 2017, ChemChina expressed the desire to purchase Syngenta shares at a price of $465 apiece. The company also suggested to the shareholders receiving additional dividends in the amount of $ 10 per share at the end of May.
ChemChina is the biggest national chemical company that produces agrochemicals, chemical materials and compounds for rubber products, industrial machinery, and petrochemicals.