Chinese authority waves through ChemChina's $43bn Syngenta takeover

 
William Turvill
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ChemChina and Syngenta agreed to the deal more than a year ago (Source: Getty)

The largest ever foreign takeover by a Chinese company moved a step closer to completion today.

ChemChina and Syngenta announced they have received approval from China’s Ministry of Commerce.

Read more: The largest ever Chinese takeover deal has won EU and US approval

The $43bn (£34bn) deal, which also won conditional approval from the European Commission and the US Federal Trade Commission last week, is due to complete in the first half of this year.

Syngenta’s share price jumped three per cent to 463p after news of the Chinese approval emerged.

The companies said in a statement:

ChemChina and Syngenta today announced that they have received approval from the Ministry of Commerce of the People’s Republic of China (MOFCOM) for the proposed acquisition of Syngenta by ChemChina.

This represents a further step towards the closing of the transaction, which is expected to take place in the second quarter of 2017.

The ChemChina-Syngenta transaction will ensure continued choice and ongoing innovation for growers around the world.

Read more: UK government orders probe into Chinese takeover of walkie-talkie firm

To date, ChemChina and Syngenta have won approval from 19 jurisdictions, including Mexico this week. It is still awaiting the nod from India.

The ChemChina-Syngenta deal was agreed in February 2016. It is one of three major deals agreed in the sector which is currently on the way to completion.

The European Commission gave its backing to the $130bn merger of US chemicals companies Dow Chemical and DuPont last week, again conditional on certain divestments.

Meanwhile, Germany’s Bayer last year agreed a $66bn takeover of US seeds company Monsanto.

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