The China National Chemical Corporation, also known as ChemChina, has reached an acquisition agreement with Syngenta to purchase the entire company for US$43 billion.
After months of speculation about a possible sale and several attempts by rival Monsanto, the proposed acquisition of the Swiss crop input and seed company was announced early February 3.
“We are delighted that our ‘friendly and cooperative’ principle has led to the agreement announced today. We will continue to work alongside the management and employees of Syngenta to maintain the company’s leading competitive edge in the global agricultural technology field,” stated Ren Jianxin, chair of ChemChina.
The Chinese state-owned company says it is “fully supportive of Syngenta’s intactness in its operations, management and employees.”
“Syngenta will remain Syngenta and will continue to be headquartered in Switzerland, reflecting this country’s attractiveness as a corporate location,” noted Michel Demaré, chairman of Syngenta. Demaré would stay with the company as vice chair and lead independent director. A ten member Board of Directors would be chaired Jianxin and would include four of the existing Syngenta directors.
ChemChina says it will help accelerate Syngenta’s strategy for opening new markets, including development in China and other emerging markets.
The deal is subject to approval from 67 percent Syngenta’s shareholders, as well as anti-trust reviews in relevant countries. It’s expected to close by the end of the year.
More to come.