Source: ChemChina to Divest Assets to Adama Following Syngenta Takeover
China National Chemical Corp. plans to redistribute agrochemical assets to its Adama unit after the $43 billion takeover of Syngenta to compensate the business for antitrust-related disposals, according to people with knowledge of the situation (and as reported by Bloomberg’s Andrew Marc Noel).
Adama Agricultural Solutions Ltd. is expected to strengthen its slew of crop-protection products with better technology from ChemChina after the deal is completed, said the people, who asked not to be identified because details haven’t been made public. The Israeli chemical firm can use new technology to neutralize the impact of asset sales when its parent buys the world’s largest maker of pesticides, the people said.
Adama and Syngenta are planning to sell a package of European assets to remove overlaps in specific markets, said the people. While there’s widespread interest for these products in the industry, the sellers aim to find a buyer that can maintain competition levels, the people said. No plants or fixed assets will be included, they said. Preparations for the sale will begin in the coming weeks or months, they said.
Representatives for Adama and Syngenta declined to comment. ChemChina didn’t immediately respond to an email or answer a phone call seeking comment.
Head on over to Bloomberg.com to check out the rest of Noel’s piece on the ChemChina-Syngenta spinoff development.