ChemChina and Sygenta announce MOFCOM's approval of their deal

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China’s Ministry of Commerce (MOFCOM) has approved China National Chemical Corporation’s (ChemChina) buyout of Sygenta, the two companies announced on Wednesday, bringing the deal a step closer towards completion.

MOFCOM has confirmed on Wednesday morning receiving the anti-monopoly review application for the deal, Beijing-based business publication Caixin reported. However, the ministry is yet to release the review result.

If completed, the takeover, worth up to 43 billion US dollars, would be the largest-ever overseas acquisition by a Chinese firm, and will make of ChemChina the world’s largest pesticide and agrochemical supplier.

The acquisition deal, due to be completed in the second quarter of this year, is one of many that are reshaping the international market for agricultural chemicals, seeds and fertilizers as low crop prices push down demand for agricultural products.

Chinese Ministry of Commerce Spokesman Shen Danyang. /CFP Photo

The ministry showed support for the deal when it was announced in February 2016. At the time, spokesperson for the ministry Shen Danyang said the deal is of positive significance in ensuring global food security.

By April, the merger deal had already received approvals from 16 jurisdictions. It was also approved by competition regulators in the US, the EU and Mexico earlier this month, and is still awaiting the green light from India’s trade authorities.