ChemChina’s Syngenta acquisition approved by the EU

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Europe

ChemChina’s merger with Swiss Syngenta was on Wednesday given the green light by EU regulators, subject to it meeting conditions, following a set of commitments made by ChemChina to ease concerns of the European Commission over market competition.

ChemChina, an abbreviation for China National Chemical Corporation, is China’s largest chemical company and is currently active in pesticide markets in Europe through its subsidiary Adama, while Syngenta is a leading pesticide supplier worldwide.

“ChemChina has offered significant remedies, which fully address our competition concerns. This has allowed us to approve the transaction," the EU commissioner for competition Margrethe Vestager told a press conference.

Swiss agrochemicals maker Syngenta's plant in Muenchwilen, Switzerland, February 3, 2016. /CFP Photo

To win the approval, ChemChina has promised to sell significant parts of its Adama and Syngenta pesticides and plant growth regulator business, according to a statement released by the commission.

The deal, worth up to 43 billion US dollars, which would be by far the biggest-ever overseas acquisition by a Chinese firm, was announced in February 2016.

The acquisition was approved by the US Federal Trade Commission on Tuesday. It is still awaiting approval from Chinese, Indian and Mexican trade authorities.

If the takeover is completed, ChemChina will become the world’s largest pesticide and agrochemicals supplier.