A US national security panel has cleared China National Chemical Corporation’s planned US$43 billion takeover of Swiss agribusiness group Syngenta, removing a major hurdle for the mega deal.
The Committee on Foreign Investment in the United States approved the deal, boosting chances that the largest foreign acquisition ever by a Chinese company will go through, Reuters reported.
The deal had faced uncertainty as some US lawmakers and farmers groups had expressed fears that the acquisition of a pesticides giant by a Chinese state-owned firm could pose a risk to the US farm sector.
US regulators reviewed the deal because more than a quarter of Syngenta’s seeds and crop protection revenue last year came from North America.
China National Chemical, which is commonly known as ChemChina, offered US$465 per share cash for Syngenta.
With the deal getting the greenlight in the US, it now has to get past an antitrust review by the European Union.
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