Syngenta AG shares are up on Wednesday after the “mother of all” chemical mergers is reportedly being considered between Dow Chemical Co and EI Du Pont De Nemours And Co.
According to a source familiar with the matter, Syngenta could be next. China National Chemical Corp, commonly known as ChemChina, is said to be considering a purchase of Syngenta in a deal that may be announced by Friday.
The value of the deal is expected to be 44 billion Swiss francs ($44.53 billion), trumping a $42 billion buyout offer ChemChina reportedly made for Syngenta in mid-November. HSBC is one bank working on the deal, the source added.
After rejecting ChemChina’s first offer on November 12, Bloomberg reported both sides could reach an agreement “within weeks.”
Syngenta told Benzinga in an email that it “has no comments to make” on the matter, while an HSBC analyst declined to comment. ChemChina could not be immediately reached for comment.
Deal ‘Makes Sense’
Speaking to Benzinga, a sell-side analyst said a deal between ChemChina and Syngenta “makes sense to some extent,” adding that the acquirer has a “strategic desire to capture new chemical production.”
Industry expert Angie Setzer said she expects either Monsanto Company
or ChemChina to purchase Syngenta eventually. A ChemChina tie-up would have “far less hoops to jump through from an anti-trust standpoint” than Monsanto, she explained, adding that Syngenta might also prefer gaining exposure to a new customer base in China.
In August, Monsanto dropped its $46 billion cash-and-stock bid for Syngenta because the offer didn’t meet Syngenta’s standards.
ChemChina’s new offer for Syngenta is expected to be in all cash, the aforementioned source said.
The US State of New York is introducing two new bills to combat over-packaging, poor recycling rates and litter issues, including an Extended Producer Responsibility (EPR) program requiring companies such as McDonald’s and Amazon to pay for the cost of packaging disposal and recycling.
The new organization’s mission is to redesign the critical steps of the plastics sorting and recycling system for post-consumer lightweight packaging (LWP) to speed up circularity, born from a need to meet the rising market demand for high-quality recyclates for use in high-end plastic applications.
Starbucks and Hubbub have launched a £1 million (US$1.22 million) “Bring It Back Fund” to increase the uptake of reusable packaging in the F&B industry. The funding will go toward innovative ideas that make it easier for customers to use alternatives to single-use packaging by supporting pilot projects that help shift consumption habits.