ChemChina, Syngenta clinch US antitrust approval for US$43 bn deal
Biggest foreign acquisition by China one step closer to completion
China National Chemical Corp. (ChemChina) won US antitrust approval for its US$43 billion takeover of Swiss pesticide maker Syngenta AG, bringing China’s largest foreign acquisition one step closer to the finish line.
The US Federal Trade Commission said Tuesday that it was requiring the companies to divest three types of pesticides in the US as a condition for completing their deal. China’s antitrust authorities are also reviewing the proposed tie-up.
Both the US and the European Union took a close look at the deal, with the European Commission opening an in-depth investigation last year. It cited concerns that the transaction might lead to higher prices and reduced choice for crop protection products sold to farmers.
The EU has an April 18 deadline to end its review. The companies have said they expect to close their deal by the end of June.
The takeover, announced a year ago, is one of a trio of mega-deals that would reshape the global agrochemicals industry. Dow Chemical’s bid to merge with DuPont cleared its biggest hurdle last week when it won EU approval with hefty concessions. Bayer AG still needs approval for its purchase of Monsanto. The combined transactions would whittle down six industry players to three behemoths: one American, one German and one Chinese.
If the deal is completed, ChemChina Chairman Ren Jianxin would become a head of a chemicals giant that sells products as varied as rubber tires, pesticides and genetically modified crop seeds.