ChemChina clinches $43 billion deal for Syngenta’s takeover

This is a significant achievement for China since it wants to put to use Syngenta’s top tier Chemicals and patent-protected seeds to improve its agricultural output.

In a significant development, ChemChina has managed to win enough support from Syngenta’s shareholders to approve its $43 billion takeover bid.

With this strategic move, China has secured a key hold over the seed and pesticide market in the world.

Announced in February 2016, the deal revolves around Communist China’s desire to use Syngenta’s portfolio of top-tier chemicals and patent-protected seeds to improve its domestic agricultural output.

The deal is have an indirect impact on the upcoming negotiations between U.S. and China with the U.S pushing China to open up its agricultural sector.

The deal marks China’s biggest foreign takeover to date.

It is very significant given that it will re-make the international market for fertilisers, agricultural chemicals and seeds.

Based on preliminary figures, nearly 80.7% of Syngenta shares have been tendered, above the minimum threshold of 67% support, said both companies in a joint statement.

Syngenta’s products are sold in more than ninety countries around the world across various brands, including, Callisto, Acuron, Beacon and Axial. It also sells seeds for rice, corn, cereals, soybeans and vegetables.

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