ChemChina is acquiring Syngenta in a $43 billion cash offer.
The offer is equivalent to a Swiss franc value of CHF 480 per share. Syngenta shareholders will, in addition, receive the proposed ordinary dividend of CHF 11 in May 2016. It is planned to make a facility available for the conversion of US dollar sales proceeds into Swiss francs on closing.
The Board of Directors of Syngenta considers that the proposed transaction respects the interests of all stakeholders and is unanimously recommending the offer to shareholders. There is committed financing for the deal and a strong commitment to pursue regulatory clearances.
Syngenta’s existing management will continue to run the company. After closing, a 10-member Board of Directors will be chaired by Ren Jianxin, Chairman of ChemChina, and will include four of the existing Syngenta Board members.
“In making this offer, ChemChina is recognizing the quality and potential of Syngenta’s business,” said Michel Demaré, Chairman of Syngenta. “This includes industry-leading R&D and manufacturing and the quality of our people worldwide.
“The transaction minimizes operational disruption,” he added. “It is focused on growth globally, specifically in China and other emerging markets, and enables long-term investment in innovation.”
Syngenta will remain known as Syngenta and will continue to be headquartered in Switzerland.
“The discussions between our two companies have been friendly, constructive and co-operative, and we are delighted that this collaboration has led to the agreement announced today,” stated Jianxin. “Our vision is not confined to our mutual interests, but will also respond to and maximize the interests of farmers and consumers around the world.”
The transaction will enable further expansion of Syngenta’s presence in emerging markets, notably China. In addition to its array of modern chemistry, Syngenta will contribute its experience and know-how in promoting the highest environmental standards and in nurturing thriving rural communities.
According to The Wall Street Journal, the management teams of ChemChina and Syngenta first met in Germany nearly a year ago. Discussions between the companies accelerated in December. Syngenta’s board gave the approval for Syngenta’s management to begin negotiating a deal with ChemChina in early January.
Source – Syngenta