Tuesday, February 2, 2016

ChemChina buy from Syngenta 42200 bd: Reuters – FORTUNE

NEW YORK (Reuters) – The Chinese state ChemChina is close to reaching a deal to buy the Swiss group Syngenta seeds and pesticides by nearly 43,000 million Swiss francs (42,200 million), said Tuesday two people familiar with the matter.

The operation, which offers nearly 470 Swiss francs per share, would be the biggest international agreement involving a Chinese buyer and marks an acceleration in restructuring the global agrochemical industry.

The deal would be announced on Wednesday, when Syngenta publishes its 2015 results, the sources said.

A source said they are still discussing minor adjustments in prices.

ChemChina’s offer would represent a premium of almost 24% compared to the closing value of the shares of Syngenta on Monday to 378.40 francs.

Shares of the company rose 3.67% to 392.30 at 12:02 Swiss time francs central Mexico.

Syngenta declined to comment, while ChemChina was not immediately available for comment outside regular working hours.

Syngenta last year rejected proposals to purchase American seed giant Monsanto, saying it could create value on their own.

Read: Monsanto ‘throw in the towel’ and desist from buying Syngenta

But with the deterioration of agricultural markets and the merger of the businesses of pesticides and seeds of major competitors like DuPont and Dow Chemical, the chairman of the board of Syngenta, Michel Demare said recently that “acting on their own was almost impossible.”

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