AusBN - ChemChina have agreed a USD$43 billion acquisition of Swiss pesticide giant Syngenta, in what would be the biggest foreign investment by a Chinese company to date. The state-owned chemical
firm have offered 480 Swiss francs a share in Syngenta and the announcement saw Syngenta shares rise 6 per cent in Zurich on Wednesday.
ChemChina faced down competition from the American corporation Monsanto, who had a bid for Syngenta of $46 billion rejected on the grounds of competition in 2015.
Syngenta had sales of $13.4 billion in 2015, mostly from pesticides and seeds, ChemChina’s proposed takeover would transform the company into the world’s biggest supplier of pesticides and agrochemicals.
The Swiss firm are pleased with the deal, Syngenta chief executive John Ramsay saying it will allow the company to maintain its position as a world leader.
He said: “Syngenta is the world leader in crop protection... This deal will enable us to maintain and expand this position, while at the same time significantly increasing the potential for our seeds business.”
ChemChina chairman Ren Jianxin will become chairman of Syngenta, while four of its existing directors will sit on the 10-member board.
The Chinese chemical giant also own the Italian tyre-maker Pirelli, German machinery-maker KarussMaffei and Israel's biggest pesticides producer.