China National Chemical Corp. (ChemChina) is set to secure conditional antitrust approval from the European Union for its US$43 billion bid for Swiss pesticides and seeds group Syngenta, the largest foreign acquisition by a Chinese company, two people familiar with the matter said.
The Chinese state-owned company has agreed to minor concessions to allay the European Commission’s concerns over its takeover of the world’s largest pesticides maker, Reuters said.
Regulators had been worried that the deal may lead to higher prices and fewer choices for farmers.
ChemChina will divest a couple of national product registrations, including existing products and a few in the pipeline, in more than a dozen EU countries, the news agency said, citing one of its sources.
The products are generally from ChemChina unit and Israeli crop protection company Adama while a few are from Syngenta, the source said.
No plants, facilities or personnel are involved. Adama is the largest supplier of generic crop protection products in Europe.
The Commission may announce its approval next month, ahead of its scheduled April 12 deadline, the source said.
– Contact us at [email protected]