By CGTN’s Martina Fuchs
Chinese state-owned ChemChina clinched its 43 billion US dollar acquisition of Swiss pesticide and seed giant Syngenta earlier this month, in what is the largest ever overseas deal by a Chinese company.
While many are worried about a Chinese takeover of the Swiss firm, Syngenta CEO Erik Fyrwald is confident that the transaction will bring energy into the company, and help it “aggressively” expand in China.
“Syngenta will stay Syngenta , we will stay a Swiss company, a global company, but with a Chinese ownership,” according to the CEO.
However, he also said the company is expecting two major changes. Firstly, Syngenta has to focus more on the future, as the Chinese owners want it to invest for the long term. Secondly, the company will do more to lift agriculture and food security in China.
Syngenta CEO Erik Fyrwald /VCG Photo
Syngenta is the world's largest crop chemical producer, with 12.8 billion US dollars sales in 2016. According to Syngenta’s annual report, the deal with ChemChina is regarded as guaranteeing Syngenta’s long-term investment in innovation.
Meanwhile, the company is excited by the opportunity to assist in the ongoing modernization of Chinese agriculture, bringing not only products but also experience and know-how in promoting the highest environmental standards. Fyrwald said he thinks the transaction will help China boost its domestic agricultural output and its food security.
Syngenta soybeans are harvested with a combine harvester near Princeton, Illinois, US, Sept. 29, 2016. /VCG Photo
As China’s Belt and Road Initiative is catching global eyes, Fyrwald lavished praise on the trade-boosting scheme.
“China’s ability to help develop these Belt and Road countries will lift their demand for food and agriculture. And, better infrastructure there also enables better movement of the crops, and improves the global agriculture situation,” he said.
Syngenta is now doing business with most of the Belt and Road countries, and will continue investing here. But the company’s biggest increasing investment will still be built off its substantial investment in China.
CGTN’s Martina Fuchs speaks to Syngenta’s Erik Fyrwald on the sidelines of the Saint Gallen Symposium in Switzerland. /CGTN Photo
ChemChina made its offer for Syngenta in February 2016, but the completion of the takeover dragged on as it waited for the green light from regulators. It is one of several deals to shake up the international market for agricultural chemicals, seeds and fertilizers. Both US and EU regulators approved the deal in April despite growing resistance on both sides of the Atlantic to blockbuster takeovers by Chinese companies.
