Syngenta shareholders accept ChemChina merger offer
May 26, 2017
The shareholders of Swiss pesticide and seeds maker Syngenta accepted on 5 May China’s national chemical corporation ChemChina’s US$43bn takeover offer after tendering the required amount of shares.
Based on preliminary numbers, Syngenta had tendered 80.7% of its shares, which was well above the 67% minimum acceptance rate condition for the approval.
Syngenta CEO Erik Frywald described the fulfilment of the tendering condition as a “historic day for Syngenta and truly a great day for our shareholders, for our employees, our customers and for ChemChina” in an interview with CNBC.
The deal was conditionally approved in April by both the USA and the EU, the Agri-Pulse news site wrote.
The US Federal Trade Commission required ChemChina to sell all right and assets of its subsidiary ADAMA’s US paraquat, abamectin and chlorothalonil crop protection businesses.
The European Commission (EC) required ChemChina to sell a “significant part” of ADAMA’s pesticide and plant growth regulator business in Europe, including fungicides and insecticides for oilseed rape, sunflower herbicides and seed treatment products for cereals and sugar beet.
The EC also required Syngenta to sell some of its vegetable fungicides and herbicides for cereals, vegetables and sunflower.
According to a schedule published by Syngenta, the merger transaction was projected to close by early June latest.
The acquisition was the furthest along among the three large chemical company mergers in the pipeline, also including Dow-DuPont and Bayer-Monsanto.