Daily Management Review

ChemChina Gets A Clearance For Taking Over Syngenta From E.U. On Conditions


04/07/2017


ChemChina’s Syngenta takeover with conditional approval from E.U. could add to the changing landscape of international agricultural market.



China could now “boost its domestic agricultural output” as on Wednesday, the 5th of April 2017, ChemChina has received E.U’s approval for taking over the Syngenta Group in a “$43 billion bid”. The latter is a Swedish “pesticides and seeds group”.
 
The above mentioned marks the “largest foreign acquisition” conducted by a China based company. Likewise, this among several other, is in the process of redesigning the “international market” for “agricultural chemicals, seeds and fertilizers”; although farmers also fear that the “new herbicides and pesticides” pipeline might be slow. Moreover, on the 2nd of February 2017, the Reuters report revealed that the said deal would receive clearance on conditional ground.
 
While, the European Commission are of the opinion that the “asset sales” dealt with “its competition concerns”. According to a statement of Margrethe Vestager, European Competition Commissioner:
“It is important for European farmers and ultimately consumers that there will be effective competition in pesticide markets, also after ChemChina's acquisition of Syngenta”.
 
Following the announcement of European Union’s “antitrust clearance”, the shares of Syngenta rose by “1.5 percent”. On the other hand, ChemChina is preparing to sell quite a large portion of “Adama's pesticide, herbicides and insecticides business”, the latter being a subsidiary of ChemChina that treats seed products for “cereals and sugar beet”, while incorporating “a substantial part of its plant growth regulator business for cereals”.
 
While, Foo Yun Chee also added:
“Some of Syngenta's pesticides will also be put on the block. World No. 1 pesticides maker Syngenta sells its products in more than 90 countries under such brand names as Acuron, Axial, Beacon and Callisto. It sells seeds such as cereals, corn, rice, soybeans and vegetables”.
 
ChemChina will allow the deal to take place provided it “divest three products”.  The approval from E.U. came after a week from its clearance of the “$130 billion Dow Chemical (DOW.N) and DuPont (DD.N) merger” which was conducted in return of “hefty asset sales” that included “global research and development facilities”.
 
 
 
 
References:
http://www.reuters.com







Science & Technology

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

Fuchsia will kill Android by 2023: Top 5 facts about the new OS

New Study Finds Goats Interact More With Happy People

More than 32 thousand "smart" houses under threat of hacker attack

Internet addiction and children: Global plague

Apple takes up to develop Apple Watch for health monitoring

Hyperloop is growing in Europe

Analysts: US gamers prefer mobile games

Google Assistant Winner Of Head-To-Head Test Of Digital Assistants, Beats Siri And Alexa

World Politics

World & Politics

Ex-Brexit Minister Said A ‘Reset’ Is Needed For Brexit Talks

10 countries with the best healthcare systems

Foreign Experts To Be Allowed By North Korea For Permanent Destruction Of Missile Sites

Ireland recovers €14.3 billion from Apple

Is China going to cancel its birth limit policy?

The US is ready to start negotiations with China

US and China start 5G race

Is Czech Republic posing a threat to the European Union?