Wednesday, February 3, 2016

ChemChina, record offer for Syngenta: on the plate 43 billion – The Republic

MILAN – China beats the United States. With an offer of 43 billion dollars China National Chemical Corp, which already controls Pirelli, has been awarded the Swiss chemical giant Syngenta: the safe world seeds. The Swiss company’s board – which last year had strongly opposed an attempted acquisition of US rival Monsanto – has recommended the offer of $ 465 cash per share, plus a special dividend, arguing that “respects the interests of shareholders “Syngenta and will favor the expansion in emerging markets and China.

the Swiss giant has closed 2015 with revenues of $ 13 billion and the insiders are wondering what ChemChina will push sales mattendo threatened the supremacy Monsanto which had sales of 15 billion. Behind them there are the Germans with Bayer’s (11 billion) and BASF (6000000000). Globally it is a real revolution: Swiss guard the patents of the main GM crops in the world, while the Chinese that on one hand are large consumers with a population of nearly 1.5 billion people, on the other hand have the strength and the ability to further develop the business.

the acquisition is also likely to change the relations between the United States, European Union and China. If the negotiations for the approval of the TTIP – the Free Trade Agreement between the EU and USA – the main concern of Europeans is precisely the use of GM crops in the US, now the fears are destined to move East. With Beijing, in fact, are ongoing negotiations for the recognition of China as a market economy: Europe is divided on the issue because the green light would bring down the duties which now protect the Old Continent Asian manufacturing invasion. Having put hands on Syngenta is an important bargaining chip for the Chinese aware of what Europe needs to GM seeds, starting from soy.

is also why Beijing has been hesitant to put on the plate the highest in history bid for a Chinese company abroad (the previous record belonged to the 28 billion paid in 2008 by China Netcom Group Corp to China Unicom, Hong Kong). And ‘therefore also most Chinese to acquire a European company: according to data Reuters jumps directly at the top front of Rio Tinto and Addax Petroleum, moving Pirelli at the foot of the podium. Last month ChemChina announced the acquisition of 12% of the Swiss company of energy, Mercuria and the acquisition of KraussMaffei, the German group of plastic production, for 925 million euro.

ChemChina, record offer for Syngenta: on  the plate 43 billion

The value of m & amp operations ; on the part of Chinese companies abroad deal with this 2016 has already set a new record (source Reuters )


the Swiss giant will distribute a ordinary dividend of CHF 11 per share in May and a special coupon of 5 francs for the title at the conclusion of the transaction service. The offer should start in the coming weeks and its conclusion is expected by the end of the year. The current management of Syngenta will continue to lead the company and the board of directors will be composed of ten members representing the Chinese shareholder and 4 current Syngenta executives. The headquarters of the company will remain in Switzerland.

The Swiss group, entirely dedicated agribusiness (from seeds to pesticides) closed 2015 with profits down 17% to $ 1.3 billion. Also weighing on the result, inform the Swiss giant, the collapse of raw materials and exchange rate volatility. Revenue declined 11% to $ 13.4 billion.

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ChemChina
syngenta
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