ChemChina's Syngenta acquisition close to clearing U.S. review

Date:08-22-2016

ChemChina's $43 billion acquisition of Syngenta AG is in the final stages of being cleared by the Committee on Foreign Investment in the United States (CFIUS), which scrutinizes deals for national security implications, people familiar with the matter said.

A positive end to the CFIUS review would remove significant uncertainty over whether the acquisition of the world's largest pesticides maker will be completed. Syngenta shares ended trading on Friday at 380.80 Swiss Francs ($396), some 100 Swiss Francs less than what ChemChina's offer valued the company.

Syngenta and ChemChina expect that CFIUS will clear their deal, and are hoping to announce a positive outcome as early as this week, the sources said on Sunday, cautioning that the outcome was not yet certain.

It was not known whether the two companies had agreed to any concessions in their negotiations with CFIUS for their deal to be approved.

The sources asked not to be identified because there has not yet been any official announcement on the CFIUS review. CFIUS, Syngenta and ChemChina did not immediately respond to requests for comment.