EU, US approve Chinese firm's biggest overseas buyout
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E-mail China Plus, April 6, 2017
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ChemChina wins U.S. antitrust approval for its USD 43 billion purchase of Swiss pesticide maker Syngenta AG. [Photo/guancha.cn] |
The acquisition of Swiss pesticide maker Syngenta AG by China National Chemical Corp.(ChemChina) was approved conditionally by the European Union and the U.S. Federal Trade Commission (FTC) on April 4th. Valued at USD 43 billion, the deal, if completed, will become the largest overseas acquisition by a Chinese firm.
To fulfill the deal, ChemChina was required by the FTC to divest three types of its pesticides in the U.S.
As the Wall Street Journal has reported, ChemChina has agreed to sell its businesses of generic pesticides of Paraquat, Abamectin and Chlorothalonil to American Vanguard Corporation.
Syngenta owns the branded versions of the three pesticides while Adama, an Israel-based subsidiary of ChemChina, sells the generic versions in the U.S., reported Bloomberg.
The takeover, announced early in February last year, was later questioned by the EU, which feared it would restrict competition within the markets of pesticides and other relative agricultural chemicals, as Syngenta and ChemChina held dominating market shares.
"ChemChina has offered significant remedies, which fully address our competition concerns. This has allowed us to approve the transaction," says Margrethe Vestager,the EU Commissioner.
So far, pertinent authorities from China, India and Mexico are still reviewing the acquisition.
As a top-notch chemical company in China, ChemChina has been no stranger to mega-deals. In 2015, it purchased a 26% share of Italy's tyre manufacturing company Pirelli.
ChemChina Chairman Ren Jianxin had purchased over 100 companies when he was in charge of the predecessor of ChemChina before it later took on the new name, reports guancha.cn.
The FTC has jurisdiction over the ChemChina-Syngenta deal because Syngenta's products are sold in the U.S., reports Bloomberg.
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