Sector News

Syngenta turns down $42bn ChemChina bid

November 13, 2015
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

January 29, 2023

Dow and 3M cut thousands of jobs

Chemical Value Chain

3M and Dow have announced they are cutting thousands of roles from their global workforces in response to economic pressures. Dow has said it will cut 2,000 jobs across its global workforce (around 5%) in a bid to save US$1bn in 2023. The company says it will also cut costs by shutting down “select assets”, though it did not note where it would halt operations.

January 29, 2023

Sweden discovers Europe’s largest rare earths deposit

Chemical Value Chain

Sweden’s state mining firm has discovered what could be Europe’s largest rare earths deposit, and says it could help the bloc reduce its reliance on imports of minerals needed to manufacture clean technologies and meet climate targets.

January 29, 2023

Avantium to supply Henkel with plant-based FDCA

Chemical Value Chain

Henkel and Avantium have been partners since 2019, when Henkel joined the PEFerence consortium. This consortium of partners, coordinated by Avantium, aims to establish an innovative supply chain for FDCA and PEF (polyethylene furanoate).

How can we help you?

We're easy to reach