Syngenta’s stock price jumped more than 10 percent on Monday morning, after news the company’s acquisition by China National Chemical Corporation — aka ChemChina — cleared a major hurdle in the U.S.
Both companies announced the Committee on Foreign Investment in the U.S. has granted its approval for the proposed US$43 billion takeover announced back in February. The committee’s role is to review national security implications of foreign investments in the U.S.
As shown by Syngenta’s market value, the decision is viewed as significantly improving the odds the sale will go through.
“In addition to CFIUS clearance, the closing of the transaction is subject to anti-trust review by numerous regulators around the world and other customary closing conditions,” the companies noted in a joint statement. “Both companies are working closely with the regulatory agencies involved and discussions remain constructive.”
Syngenta says it still expects the deal to close by the end of 2016.