European Commission Approves Syngenta Acquisition by ChemChina

ChemChina and Syngenta have recently announced that they received approval from the European Commission, for the proposed acquisition of Syngenta by ChemChina.

This represents a major step towards the closing of the transaction, which is expected to take place in the second quarter of 2017.

The ChemChina-Syngenta transaction will ensure continued choice and ongoing innovation for growers in Europe and around the world, according to the companies.

ChemChina won conditional EU antitrust approval for its USD43bn bid for Swiss pesticides and seeds group Syngenta, a deal that could help China boost its domestic agricultural output.

The deal is one of several reshaping the agricultural chemicals and seeds market, even as these deals trigger fears among some farmers that bigger, more powerful suppliers could be better placed to push up prices and economize on developing new herbicides and pesticides.

Reuters reported that the deal, the largest foreign acquisition by a Chinese company, would be cleared with conditions. The European Commission said planned asset sales would address its competition concerns.

"It is important for European farmers and ultimately consumers that there will be effective competition in pesticide markets, also after ChemChina's acquisition of Syngenta," European Competition Commissioner Margrethe Vestager said in a statement. Syngenta shares were trading up 1.1 percent after the clearance was announced.

ChemChina will sell a large part of its subsidiary Adama's pesticide, herbicides and insecticides business, its seed treatment products for cereals and sugar beet and a substantial part of its plant growth regulator business for cereals.