Bloomberg: Syngenta-Chem China Deal on Track for Regulatory Approval
July 25, 2016 Syngenta AG, which has agreed to be taken over by China National Chemical Corp. for $43 billion, said talks with regulatory authorities to win approval for the deal have been constructive and the Swiss company is confident the transaction can be closed on time, reports Andrew Marc Noel with Bloomberg.com.
Talks with the Committee on Foreign Investment in the U.S. are ongoing and the goal remains to complete the deal by year end, Chief Executive Officer Erik Fyrwald said in a phone interview on Friday. Basel, Switzerland-based Syngenta reported a 12% decline in first-half earnings before interest, taxes, depreciation and amortization to $1.77 billion, lower than an average of $1.91 billion predicted by analysts surveyed by Bloomberg. Sales fell 7% to $7.1 billion.
The CEO is seven weeks into the role with the dual task of steering Syngenta through its takeover by the state-owned Chinese company and streamlining a cost base to adapt to increased competition. Its parent-to-be will provide a buffer at a time of weak grain prices, a lack of credit among farmers in Latin America, and a relatively benign year for pests.
“Most importantly, there’s confidence in closing the ChemChina deal before year end and constructive discussions with all regulators,” said Patrick Lambert, an analyst at Raymond James in London. “With lots of consolidation around, this one does not change the landscape and should actually maintain a choice of technology for farmers.”
Bang it on over to Bloomberg.com for the full story.
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