China’s chemicals group ChemChina has offered more than $43bn to take over Swiss agribusiness giant Syngenta. The Swiss company said it was ‘unanimously recommending the offer to shareholders’ and that the deal would help it further expand in China.
“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,” Syngenta chairman Michel Demaré said in a statement. “Syngenta will remain Syngenta and will continue to be headquartered in Switzerland, reflecting this country’s attractiveness as a corporate location.”
Although ChemChina does not have a big business in agricultural chemicals, it will still need regulatory approval in the US and Europe for the deal to go through. The company already owns a variety of businesses, included the Italian tyremaker Pirelli, German machinery-maker KarussMaffei and Israel’s biggest pesticides producer.The Swiss company has seen its stock price get a boost on speculation it would be taken over.
ChemChina bids record $43bn for Swiss agribusiness giant Syngenta
Source: bbc