China Cleared in Takeover Bid for Syngenta
LONDON — China moved closer to sealing its biggest foreign deal to date and bolstering its efforts to feed its population on Wednesday after the European Union approved China National Chemical Corporation’s $43 billion takeover of Syngenta, the Swiss farm chemicals and seeds company.
The approval came with the condition that the state-owned company, also known as ChemChina, must sell its European pesticide and plant growth regulator businesses.
The clearance came a day after the deal also got the go-ahead from the United States Federal Trade Commission.
该交易在得到欧盟批准的前一天，也得到了美国联邦贸易委员会(United States Federal Trade Commission)的批准。
“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,” Margrethe Vestager, the European Union commissioner in charge of competition policy, said in a statement.
“ChemChina has offered significant remedies, which fully address our competition concerns.”
ChemChina will have to sell its subsidiary in Israel, Adama, which is the world’s biggest producer of generic pesticides. The F.T.C.’s approval was also conditional on ChemChina’s selling parts of Adama’s business in the United States to an agrochemical company based in California.
China has struggled to maintain and control its food supply in recent years. It hopes to better feed its growing and increasingly affluent population.
They are also nervous about genetically modified food, even as China wants to use the science to ramp up production.
The ChemChina deal could bolster China’s efforts to become a major player in the field of genetically modified food, and it has poured money into developing its homegrown industry.
If the Syngenta acquisition closes, it would suggest that China still has the scope and willingness to strike big deals for major global names.
In recent years, the country has been on an acquisition spree, buying up major strategic assets like copper mines and oil deposits as well as investing in flashier, if less economically or geopolitically important, deals for marquee names like the Waldorf Astoria hotel in Manhattan.