Syngenta-ChemChina Merger Clears Important Hurdle

A U.S. national security panel has cleared ChemChina's $43 billion takeover of Swiss pesticides and seeds group Syngenta, the companies said, boosting chances that the largest foreign acquisition ever by a Chinese company will go through, Reuters reported.

The decision removes significant uncertainty over the takeover of the world's largest pesticides maker. Several U.S. lawmakers and groups representing farmers had expressed fears over a Chinese state-owned company being in a position to influence the U.S. food supply.

Syngenta shares jumped as much as 12.5 percent on the news and ended trading on Monday up 10.6 percent at 421.20 Swiss francs ($437.9). ChemChina's $465 per share cash offer values the company at around 448 Swiss francs per share at current exchange rates, plus a special five-franc dividend.

Source: Reuters