Companies expect transaction to close in second quarter of 2017.
“This represents a further step towards the closing of the transaction, which is expected to take place in the second quarter of 2017,” Syngenta said. “The ChemChina-Syngenta transaction will ensure continued choice and ongoing innovation for growers around the world.”
The proposed acquisition was recently
cleared by the European Commission during an in-depth review of the transaction. The Commission had concerns that the transaction as originally configured would have reduced competition in a number of existing markets for pesticides. Furthermore, the Commission had concerns that the transaction would reduce competition for plant growth regulators. The Commission's investigation focused on competition for existing pesticides, since ChemChina does not compete with Syngenta for the development of new and innovative pesticides.
The deal was first announced in February 2016 and initially was expected to close by the end of 2016. It has faced some hurdles in the various countries that must give approval. In late February, ChemChina extended its $43 billion offer for Syngenta to April 28 as it seeks to gain regulatory approvals.
ChemChina has production, research and development, and marketing systems in 150 countries and regions. It is the largest chemical corporation in China, and occupies the 265th position among the Fortune 500. The company’s main businesses include materials science, life science, high-end manufacturing and basic chemicals, among others. Previously, ChemChina has successfully acquired nine industrial companies in France, the U.K., Israel, Italy and Germany.