SYT Syngenta Ag (delisted)

By Brian Spegele 

BEIJING -- China's biggest-ever foreign acquisition took a further step toward completion Wednesday, with China's Ministry of Commerce approving the $43 billion planned takeover of Swiss agri-giant Syngenta AG by state-owned China National Chemical Corp.

The approval by China's Commerce Ministry -- which was expected given ChemChina's status as a major state-owned enterprise -- marked the fourth approval this month for the deal. Earlier, authorities in the U.S. and European Union gave it a green light, although each had conditions for ChemChina to divest certain assets. Mexican authorities have also approved it.

In their statements, ChemChina and Syngenta didn't say if China's government attached any conditions to its approval, and the Commerce Ministry couldn't be reached for comment late Wednesday in China.

The deal, if completed, would mark a significant breakthrough for China's state-owned enterprises on the global stage, proving they can navigate tricky political and regulatory waters to scoop up prized assets and technologies to help China's economy expand. The companies said Wednesday they expected the deal to close in the second quarter.

The approval by China's Commerce Ministry suggests ChemChina's takeover still has political support in Beijing, where some industry executives and observers have questioned whether growing concerns over falling foreign currency reserves could hamper the deal's completion.

If completed, the deal could help transform China's agricultural sector over time, with China's government gaining ownership over prized farming technology, such as genetically modified seeds. Proponents say such technology has helped raise crop yields in the U.S. and elsewhere in recent years.

The ChemChina-Syngenta acquisition comes amid a tide of multibillion deals that could reshape the seeds and pesticides businesses for years. They include Dow Chemical Co.'s planned merger with DuPont Co. and the planned acquisition of Monsanto Co. by Germany-based Bayer AG.

In their statement Wednesday, ChemChina and Syngenta played down any concerns over the effects of planned industry consolidation.

"The ChemChina-Syngenta transaction will ensure continued choice and ongoing innovation for growers around the world," the companies said.

Write to Brian Spegele at brian.spegele@wsj.com

(END) Dow Jones Newswires

April 12, 2017 10:58 ET (14:58 GMT)

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