ChemChina—a Chinese-government-owned pesticide and agrochemical company—offered to acquire Swiss-based agricultural company Syngenta for $43 billion in cash. The deal is expected to close by the end of the year.
“In making this offer, ChemChina is recognizing the quality and potential of Syngenta’s business,” said Michel Demaré, chairman of Syngenta. “The transaction minimizes operational disruption; it is focused on growth globally, specifically in China and other emerging markets, and enables long0term investment in innovation.”
Syngenta’s global headquarters will remain in Switzerland, and its management team and staff will remain intact, according to Syngenta. The company’s statements have emphasized the transition will be “business as usual” for customers and employees.
According to USA Today, the deal could propel China National Chemical, known as ChemChina, to the world’s largest supplier of crop-protection products.
ChemChina also has a majority state in Adama Agricultural Solutions, the parent company of Control Solutions Inc., which produces Quali-Pro products.
The deal continues a green industry trend of consolidation. In December, DuPont and Dow Chemical merged into DowDuPont. Before merging, the two companies generated a combined $92 billion in sales.
Updated 2/4/16 to include information about Adama.
