ChemChina offers $43 billion to acquire Syngenta

The transaction will help Syngenta enter the Chinese market.
The transaction will help Syngenta enter the Chinese market.

ChemChina has offered to acquire Syngenta for $470 per ordinary share to be paid upon closing with Syngenta shareholders also receiving the proposed ordinary dividend of $11 in May.

The existing management of Syngenta will stay the same but, after closing, the board of directors will consist of Ren Jianxin from ChemChina and four of the existing Syngenta members on a 10-member Board.

“In making this offer, ChemChina is recognizing the quality and potential of Syngenta’s business," Syngent Chairman Michel Demaré said. "This includes industry-leading R&D and manufacturing and the quality of our people worldwide. The transaction minimizes operational disruption; it is focused on growth globally, specifically in China and other emerging markets, and enables long-term investment in innovation. Syngenta will remain Syngenta and will continue to be headquartered in Switzerland, reflecting this country’s attractiveness as a corporate location.”

The transaction will help Syngenta enter the Chinese market while promoting its high environmental standards.

“Syngenta is the world leader in crop protection having significantly increased its global market share over the last 10 years," Syngenta CEO John Ramsay said. "This deal will enable us to maintain and expand this position, while at the same time significantly increasing the potential for our seeds business. It will ensure continuing choice for growers and ongoing R&D investment across technology platforms and across crops. Our commitment to cost and capital efficiency will remain unchanged.”

The two companies hope to be able to continue commitments to serve rural communities through ChemChina’s endorsement of The Good Growth Plan and Syngenta’s Foundation for Sustainable Agriculture.

“The discussions between our two companies have been friendly, constructive and co-operative, and we are delighted that this collaboration has led to the agreement announced today,” ChemChina Chairman Ren Jianxin said. “We will continue to work alongside the management and employees of Syngenta to maintain the company’s leading competitive edge in the global agricultural technology field. Our vision is not confined to our mutual interests, but will also respond to and maximize the interests of farmers and consumers around the world.”

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