ChemChina Syngenta Takeover Wins Chinese Regulatory Approval
13 Apr 2017 --- ChemChina’s takeover of Syngenta has taken another step closer to being finalized as the acquisition is approved by Chinese regulators. Over the last couple of weeks the so-called “mega merger” has been clearing several regulatory hurdles, getting the green light from the Mexican Federal Economic Competition Commission earlier this week.
This follows previous approvals from both the EU and US authorities for the US$43 billion deal on the condition that three products are divested to allay competition concerns.
Earlier this month FoodIngredientsFirst reported how the US Federal Trade Commission (FTC) and the European Commission also approved the proposed acquisition subject to the divestiture of ChemChina’s European pesticide and plant growth regulator business.
And now the latest nod comes from the Ministry of Commerce of the People’s Republic of China (MOFCOM).
“ChemChina and Syngenta today announced that they have received approval from the Ministry of Commerce of the People’s Republic of China (MOFCOM) for the proposed acquisition of Syngenta by ChemChina. This represents a further step towards the closing of the transaction, which is expected to take place in the second quarter of 2017,” says a joint statement.
“The ChemChina-Syngenta transaction will ensure continued choice and ongoing innovation for growers around the world.”
Meanwhile ChemChina has also announced today (Apr 13) that the tender offers to purchase all publicly held Syngenta shares and ADSs will end on 4 May, 2017.
In accordance with the framework for extensions set by the Swiss Takeover Board, ChemChina made use of the last possibility to extend the Swiss Offer provided by that framework.
“Accordingly, the Swiss Offer will end on May 4, 2017 at 4:00 p.m. CEST, and the U.S. offer will end on May 4, 2017 at 10:00 am, New York City time. Accordingly, shareholders willing to tender their shares or ADSs into the offers and thereby contribute to the satisfaction of the minimum acceptance rate condition are asked to tender their shares or ADSs by 4 May, 2017 or an earlier deadline set by their custodian bank,” says a statement.
“The Board of Directors of Syngenta has unanimously recommended the offer to shareholders. The ChemChina-Syngenta transaction respects the interests of all stakeholders and will ensure continued choice and ongoing innovation for growers around the world.”
