CNC Corp offered to pay $465 per share plus a special dividend of five Swiss francs to be paid just as the deal closes, which is expected around the end of 2016, with a Swiss and United States tender offer beginning in the coming weeks. The Swiss company rejects a proposal of 449 Swiss-francs per share.
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“This offer, which is recommended unanimously by our Board of Directors, fully values the quality of Syngenta’s business portfolio, our people and our market positions around the world”, said Syngenta’s COO Davor Pisk.
“But, as I say, we are quite comfortable with that”. The company reported Wednesday that net income for 2015 fell 17 percent to $1.3 billion as it struggled with low crop prices, instability in emerging markets and currency fluctuations. Mr. Ramsay separately played down competition concerns.
If completed, the purchase would mark a fresh high for Chinese overseas acquisitions.
For Syngenta, the deal holds the prospect of new capital and greater access to the huge China market, while for ChemChina, it gives the company access to Syngenta’s advanced biotechnology for developing seeds.
He added that the current election cycle would add to public pushback and pressure on regulators to block the deal in its current form, but Pultz believes that the deal will likely eventually go through.
“The transaction minimizes operational disruption”, Mr Demaré was quoted as saying.
“Syngenta’s strong global presence will be further reinforced by an expanded presence in China, where we will work together”.
Under the agreement, Syngenta’s existing management will continue to run the company.
Chinese chemicals group ChemChina has offered more than $43bn (£30bn) to take over Swiss agribusiness giant Syngenta.
In March, ChemChina agreed to buy Italian tire maker Pirelli & C SpA, underscoring the Chinese company’s interest in investing in Europe. And it announced a $1 billion deal last month for a German company that makes machinery for processing rubber and plastics.
The $43 billion (29.69 billion pound) deal, China’s biggest attempted foreign purchase ever, has funding from a range of Chinese players as well as from HSBC and China CITIC Bank International, the two banks that are arranging the financing, the source said.
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DuPont and Dow Chemical Co agreed in December on an all-stock merger valued at US$130 billion in a first step toward breaking up into three separate businesses, a move that was seen as a trigger for further consolidation. “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”, said Ren Jianxin, chairman of ChemChina, in a prepared statement.
