Industry News

China National Chemical Corporation to acquire Syngenta AG

According to the report published by TechSci Research, Iran Fertilizers Market Forecast and Opportunities, 2020, the demand for fertilizers in Iran is expected to grow at a CAGR of 3.5% during 2015 – 2020 on account of increasing demand to meet self-sufficiency in meeting the demand for production of staple food crops. The market is dominated by nitrogen fertilizers with urea and ammonium nitrate being the largest consumed fertilizers.

 Syngenta, a Switzerland based agricultural chemicals company, has formally agreed to the takeover proposition offered by the Chinese state owned chemical giant, that is China National Chemical Corporation (ChemChina). ChemChina offered USD43 billion for the acquisition of Syngenta and USD465 per ordinary share in cash in addition to a special dividend of 5 Swiss francs (USD4.97) to be paid prior to deal’s closing by the end of 2016. The present management of the Syngenta would continue to run the company and the headquarters would continue to be located in Switzerland. The offer is equivalent to SF480/Syngenta share. Moreover, Syngenta shareholders would also receive the anticipated ordinary dividend of SF11 in May.

Around 75% of Syngenta’s revenue is generated through sales of chemical pesticides, while majority of the remaining income is generated by the seeds business. The deal is the latest in the consolidation of the global seed and pesticide industry.

TechSci Research depicts that this acquisition would enable ChemChina to expand its position in global agricultural technology field. This deal would aid China to meet the growing demand for agrochemicals, including fertilizers and pesticides, to meet the food security concerns in the country.

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