Sector News

Syngenta shareholder group opposes sale to ChemChina

January 18, 2016
Chemical Value Chain

(Reuters) – A group of Syngenta shareholders said it opposes any sale of the company to China’s state-owned ChemChina and called for the ousting of the Swiss agrichemical group’s leadership.

In a letter to the Basler Zeitung newspaper, the managing director of the group that says it was speaking after surveying holders of about 10 percent of Syngenta’s capital attacked Chairman Michel Demare.

“The board of directors is in a cul de sac from which it cannot exit on its own,” Folke Rauscher wrote. “So the only alternative is a comprehensive renewal of the board of directors at the forthcoming annual meeting.”

Demare said last week that Syngenta was in talks about a possible merger and was weighing a number of options. He had said last month that the crop chemicals and seeds company was in talks with ChemChina, U.S. seeds giant Monsanto and others.

“One can justifiably ask whether the board has really thought through the consequences of nationalising Syngenta through a sale to a state-owned enterprise of a communist country,” Rauscher wrote.

“Anyone who lives in a successful economy marked by liberal values takes a critical view of such a nationalisation.”

Syngenta has declined to comment on the status of negotiations.

Having spurned a $47 billion takeover approach from Monsanto last year, Syngenta is under pressure from shareholders to boost its value even as agricultural markets deteriorate.

A takeover of Syngenta by ChemChina would underpin an effort by the Chinese government to boost farming productivity as it seeks to cut reliance on food imports amid limited farm land, a growing population and higher meat consumption.

A group of Chinese investors including ChemChina agreed last week to buy KraussMaffei Group GmbH for 925 million euros ($1.01 billion), in the biggest-ever Chinese investment into Germany. (Reporting by Michael Shields; editing by Adrian Croft)

comments closed

Related News

May 15, 2022

New York’s EPR and packaging reduction bills lauded as game-changers in plastic pollution battle

Chemical Value Chain

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.

May 15, 2022

Borealis and Reclay launch entity focused on lightweight packaging 

Chemical Value Chain

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.

May 15, 2022

Starbucks and Hubbub launch reusable packaging fund as COVID-19 diminishes consumer appetite

Chemical Value Chain

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.