Chinese Chemical Giant moves closer to buy Swiss Syngenta for €39.5Bn
Following Monsanto’s failed second attempt to merge with Syngenta, the Chinese seems to have better luck swaying this European chemical giant. Now ChemChina has its looking to secure a multi-billion loan facility for the acquisition.
Syngenta is a well known agribusiness leader in agriculture and seeds production. This Swiss agro-tech was born in 2000 after the merger of giants like Novartis Agribusiness and Zeneca Agrochemicals. Not surpisingly, 14 years later, Syngenta had become the world’s largest crop chemical producer, and the strongest in the European panorama.
Like many agriculture companies, Syngenta also works in the biofuel space. In 2011, it announced the corn trait Enogen to reduce the consumption of water and energy versus conventional corn. Syngenta is also known to be conducting genomic research, which is a chief area of importance in improving food security and increasing crop yields.
The deal is worth €39.5Bn ($43Bn), and will be the biggest acquisition of an overseas company by China. China National Chemical Corporation (commonly called ChemChina) is a Chinese state-owned chemical company in the product segments of agrochemicals, rubber products, chemical materials and specialty chemicals, industrial equipment, and petrochemical processing.
If the rumors are true, this buyout of Syngenta by ChemChina could therefore be one of the major acquisitions since the $130Bn Dow-Dupont’s wedding.
ChemChina recently acquired other major European companies too, including Pirelli (Italy), the Milanese Automotive empire, and Krausmaffei (Germany), a Munich based mass-industry manufacturer. So, splashing the cash…
Despite this, Michel Demaré, chairman of the company proudly demanded that ‘Syngenta will remain Syngenta,’ in a press statement. So even though a major transition is set for the Syngenta employees, the company announced that management structure and headquarters will remain in Basel, Switzerland.
ChemChina is confident that the deal will take place, potentially the not-yet-complete-deal might take a different turn from the Monsanto slap in the face.