ChemChina nearing deal to buy Syngenta for $43B
China National Chemical Corp. is nearing an agreement to buy Swiss pesticide- and seeds-maker Syngenta AG for about 43.7 billion francs ($42.8 billion) as the state-backed company extends its buying spree, Bloomberg reported. The deal would be the biggest-ever acquisition by a Chinese firm.
ChemChina, as the state-owned company is known, offered about 470 francs a share in cash, and a deal could be announced as early as Wednesday, when the Swiss company reports earnings, according to people familiar with the deal. That’s 24 percent higher than Syngenta’s last close of 378.40 francs on Feb. 1.
The deal would help Chairman Ren Jianxin transform ChemChina into the world’s biggest supplier of pesticides and agrochemicals while snatching an asset coveted by St. Louis-based Monsanto Co. It also underscores the importance China attaches to owning seed and crop care technology that can boost agricultural output and help feed the world’s biggest population.
A spokesman for ChemChina declined to comment, as did officials at Syngenta. Final talks are ongoing and could fall apart or be delayed, the people said.
At $43 billion, a successful purchase would surpass China Unicom Hong Kong Ltd.’s $29 billion purchase of China Netcom Group Corp. in 2008, according to data compiled by Bloomberg.