EU Opens In-Depth Probe into ChemChina's Bid for Syngenta

By Natalia Drozdiak

BRUSSELS--The European Union's antitrust watchdog will launch an in-depth probe into China National Chemical Corp.'s plan to buy Syngenta AG (SYT), to decide whether it would lower competition for crop-protection products and input chemicals.

"We need to carefully assess whether the proposed merger would lead to higher prices or a reduced choice for farmers," said EU Antitrust Chief Margrethe Vestager.

The European Commission, the EU's executive arm, said the companies had "strong overlapping portfolios" of crop-protection products such as herbicides and insecticides and the transaction "would take place in an industry that is already relatively consolidated."

Friday's announcement from the EU was expected after Swiss seed and pesticide maker Syngenta said earlier this week that approval of the deal was likely to be delayed into early 2017, amid a consolidation wave in the sector.

Write to Natalia Drozdiak at natalia.drozdiak@wsj.com

(END) Dow Jones Newswires

October 28, 2016 12:13 ET (16:13 GMT)

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