EU Clears ChemChina's $43 Billion Syngenta Deal With Conditions
April 05 2017 - 6:39AM
Dow Jones News
By Natalia Drozdiak
BRUSSELS--China National Chemical Corp. on Wednesday won EU
approval for its roughly $43 billion takeover of Swiss seed and
pesticide maker Syngenta AG on condition ChemChina divest large
parts of its European businesses for pesticides and products that
regulate crop growth.
The European Commission's announcement came a day after the U.S.
cleared the deal--the largest ever overseas acquisition by a
Chinese company--on condition ChemChina sell three crop chemical
businesses to a rival.
The green-light from the European Union and U.S. will further
consolidate the agrochemical market amid a wave of
multibillion-dollar deals in the industry. The EU last week cleared
Dow Chemical Co. and DuPont Co.'s merger, leaving Bayer AG and
Monsanto Co. the last of the three major deals in the sector still
looking to clinch approval from the EU and other regulators.
In the ChemChina-Syngenta deal, the EU said the companies
offered to divest a significant part of ChemChina's pesticides
business, manufactured by Adama Agricultural Solutions Ltd., an
Israeli-based ChemChina subsidiary that focuses on generic
chemicals. The companies will also sell a significant part of
Adama's plant growth regulator business for cereals in a number of
EU countries, the commission said.
In addition, the companies agreed to sell 29 of Adama's generic
pesticides under development and grant third parties access to
studies and field trial results for the products. From Syngenta,
the companies will sell off some of the firm's fungicides and
herbicides, the EU said.
To win U.S. approval, ChemChina has already pledged to sell
several of Adama's pesticide assets to American Vanguard Corp., the
Federal Trade Commission said.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
(END) Dow Jones Newswires
April 05, 2017 06:24 ET (10:24 GMT)
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