Sector News

Syngenta offer deadline extended as regulators probe deal

May 18, 2016
Chemical Value Chain

The deadline for shareholders in Swiss pesticides maker Syngenta (SYNN.S) to accept a $43 billion (29.75 billion pound) takeover bid from state-owned ChemChina has been extended to allow for some outstanding regulatory approvals, the company said on Tuesday.

Syngenta said the offer will now run from May 24 to July 18.

“We don’t have all the regulatory approvals yet,” a Syngenta spokesman said, adding the company still expected the deal to close by year end.

ChemChina has previously said that the offer period, which initially would have expired on May 23, could be renewed several times for subsequent periods of up to 40 trading days.

People familiar with the matter told Reuters on Monday that the U.S. Department of Agriculture has agreed to join the U.S. government panel that is reviewing the deal.

The move will subject the transaction to additional U.S. government scrutiny and comes after lawmakers called for the USDA be involved in the review so that the impact of the transaction on domestic food security could be better assessed.

Shares in Syngenta, which have traded at a discount to ChemChina’s offer of $465 (455 Swiss francs) per share plus a special dividend of 5 francs, were 0.7 percent lower at 390.7 francs at 1355 GMT while the broader Swiss market slipped 0.4 percent.

Switzerland-based traders said the discount would likely persist for now, given the delay.

By Oliver Hirt and Rupert Pretterklieber

Source: Reuters

Join the discussion!

Your email address will not be published. Required fields are marked *

Related News

January 23, 2021

Bayer AG appoints Sarena Lin as Chief Transformation and Talent Officer

Chemical Value Chain

Lin will become the company’s Chief Transformation and Talent Officer. She will be responsible for Human Resources, Strategy and Business Consulting and drive the accelerated transformation of Bayer.

January 23, 2021

Johnson Matthey’s battery plant in Poland to be powered by renewable electricity 

Chemical Value Chain

Johnson Matthey plc (JM; London) has confirmed that its battery cathode materials plant in Konin, Poland, will be powered solely by electricity from renewable sources from day one of production.

January 23, 2021

Oxford given £100m for antibiotic resistance research

Chemical Value Chain

Britain’s Oxford University has received a donation of £100 million (112 million euros, $136 million) to research growing resistance to antibiotics, the university announced on Tuesday. The sum, from British chemicals multinational Ineos, is one of the largest donations given to Oxford University in its long history.

Send this to a friend