Syngenta on Target to be Taken Over by ChemChina by End of 2016

21 Apr 2016 --- Revenues at Syngenta AG dropped seven percent to $3.74 billion in the quarter, as the Swiss company said it was still on track to be taken over by China National Chemical Corp (ChemChina) by the end of 2016.

Speaking to analysts, Syngenta chief executive John Ramsay said: “We are still on track. [Syngenta] is “very much anticipating the completion of the transaction, and, therefore, all the regulatory approvals by the end of the year.”

The government-owned China National Chemical Crop made the $43 billion cash offer for the pesticide and seed company in February this year.

The proposed acquisition faces regulatory challenges in the European Union and the US.

Reporting its first quarter results,  Syngenta said sales in North America were down two percent. Seed sales were up with a strong performance in corn but sales in crop protection were down. Fungicides showed growth with a significant contribution from new products.

Across Europe, Africa and the Middle East, sales rose six percent year-on-year, despite subdued growth in France, which was hit by low crop prices. Sales in south east Europe were “robust”.

Across Latin America, sales were 12 percent lower, as Syngenta was hurt by continuing credit constraints in Brazil and Argentina and delayed sales in Venezuela. Insecticides sales were hurt by low pest pressure.

Ramsay added: “Over recent months we have reviewed our integrated strategy in the light of our experience over the last five years. There have been many clear successes, notably in emerging markets, and we will continue to pursue an integrated approach where it clearly adds value.

“Seeds are central to grower decision-making and are indispensable to an integrated offer. We are however determined to improve the profitably of our seeds business.”

Syngenta is cutting costs as it looks to save as much as $1 billion by the end of 2016.