Sector News

Syngenta turns down $42bn ChemChina bid

November 13, 2015
Energy & Chemical Value Chain

Syngenta, the Swiss pesticide maker, is reported to have turned down a proposed $42bn (£28bn) takeover offer from China National Chemical Corp – a deal that would be the biggest acquisition of a European company by a Chinese bidder.

The state-owned chemicals company offered about SFr449 a share for Syngenta, the world’s biggest pesticides group, Bloomberg News reported. Syngenta, whose market value is about $32bn, turned down the $42bn approach citing the risk of regulatory intervention, Bloomberg said.

The two companies are said to be still in talks and an agreement could be reached in the next few weeks. If ChemChina, as Syngenta’s suitor is known, is successful it would mark the renewed international ambitions of China’s state-owned companies.

China’s president, Xi Jinping, imposed a crackdown on corruption that caught up several officials at state companies and prompted a pause in global dealmaking. Xi, who visited Britain last month, wants China to increase agricultural production as a growing middle class consumes more grain-intensive meat and farmland is used for development.

ChemChina is on the hunt for deals to acquire superior technology and products. Under its ambitious chairman, Ren Jianxin, it agreed in March to buy Pirelli, the Italian tyremaker, for $7.7bn.

Syngenta turned down a $47bn takeover approach from Monsanto of the US in August, saying the price undervalued Syngenta and that competition obstacles were too great.

Syngenta’s chief executive, Mike Mack, was criticised by investors for rebuffing Monsanto. He quit last month. Finance director John Ramsay is running Syngenta for the time being.

Source: The Guardian

comments closed

Related News

February 25, 2024

Antwerp Declaration for a European Industrial Deal: industry leaders call for 10 urgent actions to restore competitiveness and keep good jobs in Europe

Energy & Chemical Value Chain

During a European Industry Summit held on the site of BASF in Antwerp, leaders from basic industry sectors, representing 7.8 million workers in Europe, joined forces with European trade unions and European leaders to address pressing concerns regarding Europe’s industrial landscape.

February 25, 2024

Blue hydrogen could contribute 50% more to global warming than fossil fuels

Energy & Chemical Value Chain

The use of blue or low-carbon hydrogen, made from natural gas with carbon capture and storage (CCS), could increase near-term global warming by 50% compared with burning fossil fuels directly for energy if emissions are not properly managed, according to a new study by NGO the US Environmental Defense Fund (EDF) and the University of Arizona.

February 25, 2024

EU approves €6.9 Billion state aid for 33 hydrogen projects

Energy & Chemical Value Chain

In a move to improve the supply of renewable hydrogen and thus reduce dependence on natural gas and contribute to achieving the objectives of the European Green Deal and the REPowerEU plan, the EU Commission has approved a third Important project of common European interest (IPCEI) to support hydrogen infrastructure.

How can we help you?

We're easy to reach