Feb 12, 2016

ChemChina to Buy SyngentaSource: Syngenta

Syngenta has announced that ChemChina has offered to acquire the company in a deal worth more than $43 billion.

Syngenta’s existing management will continue to run the company. The acquisition is expected to close by the end of the year.

After the acquisition closes, a 10-member Board of Directors will be chaired by Ren Jianxin, chairman of ChemChina, and will include four of the existing Syngenta board members.

Michel Demaré, chairman of Syngenta, said: “In making this offer, ChemChina is recognizing the quality and potential of Syngenta’s business. This includes industry-leading R&D and manufacturing and the quality of our people worldwide. The transaction minimizes operational disruption; it is focused on growth globally, specifically in China and other
emerging markets, and enables long-term investment in innovation.

Syngenta and will continue to be headquartered in Switzerland. As a result of the transaction, the company reportedly will not pursue the divestment of Syngenta Flowers that was announced last fall.

John Ramsay, chief executive officer, said, “Syngenta is the world leader in crop protection having significantly increased its global market share over the last ten years. This deal will enable us to maintain and expand this position, while at the same time significantly increasing the potential for our seeds business. It will ensure continuing choice for growers
and ongoing R&D investment across technology platforms and across crops. Our commitment to cost and capital efficiency will remain unchanged.”

Ren Jianxin, chairman of ChemChina, said, “The discussions between our two companies have been friendly, constructive and co-operative, and we are delighted that this collaboration has led to the agreement announced today. We will continue to work alongside the management and employees of Syngenta to maintain the company’s leading competitive edge in the global agricultural technology field.” He added: “We look forward to Michel Demaré remaining on the board as vice chairman and lead independent director, and to working with John Ramsay and the management and employees of Syngenta to deliver safe and reliable solutions for the continued growth in global food demand.”

The transaction will enable further expansion of Syngenta’s presence in emerging markets and notably in China.