Syngenta jumps on news of Chinese approach

China National Chemical is intent on carrying out the largest ever acquisition of a company in Europe, according to people familiar with the matter, Bloomberg reported.

The state-owned company has joined the fray to buy-out Syngenta, which is talking to other suitors.

The Asian firm tabled a bid of 449 francs per share in cash, valuing the Swiss-listed pesticides maker at approximately £27.6bn ($42bn), one of the above sources said.

Basel-based Syngenta rejected that first approach but reportedly said it could serve as a basis for discussions.
An agreement could be reached in the “next few weeks”, culminating in the purchase of the world’s largest maker of pesticides.

In March 2015 ChemChina tok a 26.2% stake in Italy’s Pirelli for about £5.1bn, which was followed by a bid, together with other buyers, for the entire company.

News of the deal came amid a drive from Beijing to boost its agricultural production, a successful transaction would also give China a commanding position on the world agricultural scene.

Syngenta saw its previous chief financial officer suddenly depart after being criticised for his opposition to a takeover by Monsanto.

As of 08:50 shares in Syngenta were higher by 8.53% to 375.40 Swiss francs.