Agribusiness giant Syngenta unveils ambitious plan after ChemChina takeover

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Agribusiness giant Syngenta, and its new owner ChemChina, unveiled new ambitions Tuesday, eyeing a more prominent position in global seeds business by further expanding to emerging markets, especially China.

The company said it intends to profitably enlarge its market share through organic growth and collaborative agreements, and is considering targeted acquisitions focused on seeds. The goal is to strengthen Syngenta's leadership position in crop protection and to become an ambitious number three in seeds.

To achieve that, further expansion in emerging markets, notably China, will be the key in the future.

In 2016, the Asia-Pacific region accounted for about 15 percent of Syngenta's annual sales, reaching 1.84 billion US dollars, while the rest regions, North America, Latin America, as well as Europe, Africa and the Middle East, all contributed more than 3.2 billion US dollars.

In addition to market growth, increasing efforts in digital agriculture and ongoing investment in new technologies to increase crop yields, as well as reducing CO2 emissions and preserving water resources, will also play a major role in securing the company's leadership.

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Before the announcement, a general meeting of Syngenta shareholders elected Ren Jianxin, Chairman of ChemChina, as chairman of the board of directors on Monday. But Syngenta's operational independence in the future under the governance of the existing management team has been reaffirmed.

At a press meeting on Tuesday, Ren said together with Syngenta's board and management and all its employees, "we will work for the benefit of growers and to enhance food security, and fight famine around the world, based on principles of technological leadership, environmental safety and sustainability."

Vice Chairman and Lead Independent Director of Syngenta Michel Demare also reassured that growth is at the heart of the whole acquisition.

"All our stakeholders are benefiting from this change of ownership," Demare said, noting that Syngenta will maintain the highest corporate governance standards as a standalone company, while sharing with ChemChina a common long-term vision of contributing to global food security.

Earlier in June, Chinese state-owned chemical giant ChemChina announced the completion of a dea worth 43 billion US dollars to acquire Syngenta.

ChemChina has purchased 94.7 percent of Syngenta's shares so far and will push forward the delisting of Syngenta from both Switzerland and the United States. In the future, ChemChina will implement a strategy to make Syngenta go public again with a view to realize long-term development and create greater value, the company said.

(Source: Xinhua)