Swiss pesticide and seed giant Syngenta Wednesday announced that ChemChina had offered to acquire the company at 43 billion U.S. dollars in cash. The takeover would be the largest foreign acquisition by a Chinese company.
According to Syngenta, the offer is 465 U.S. dollars per share. Syngenta shareholders will in addition receive the proposed ordinary dividend of 11 Swiss francs (10.92 U.S. dollars) in May 2016.
The board of directors of Syngenta considered 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.
A Syngenta spokesperson told Xinhua the transaction requires the acceptance of 67 percent of shareholders to succeed, highlighting "ChemChina are offering a strategic price in cash."
Meanwhile, the transaction will close when the necessary regulatory approvals have been received, possibly before year end, the spokesperson added.
Monsanto, the U.S.-based biotech and agribusiness colossus, also tried to acquire the Basel-based Syngenta. However, at an offer of 432 U.S. dollars per share (244.5 U.S. dollars in cash), Monsanto walked away.
Once the takeover to be hammered out, 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.
ChemChina said it is committed to maintaining the highest governance standards with a view to an IPO of the business in the years to come.