Syn­genta takeover likely to be ap­proved

China Daily (Canada) - - VIEWS -

Syn­genta AG Chair­man Michel De­mare said he ex­pects only a “few” con­ces­sions would be needed to get reg­u­la­tory ap­proval for Chi­naNa­tional Chem­i­cal Corp’s $43 bil­lion takeover of the Swiss maker of agro­chem­i­cal and seeds com­pany.

“The over­lap is ex­tremely small,” De­mare said at the World Eco­nomic Fo­rum in Davos.

“There’s a few­mar­ket con­ces­sions that will have to be made, but noth­ing that will fun­da­men­tally change the busi­ness model of Syn­genta,” he added.

The deal has faced de­lays as au­thor­i­ties, who are con­cerned the ac­qui­si­tion might raise prices or re­duce choice for crop-pro­tec­tion prod­ucts sold to farm­ers, re­quested more in­for­ma­tion from the com­pa­nies.

ChemChina al­ready owns Is­raeli-based generic agro­chem­i­cal maker Adama.

The EU an­titrust re­view has been ex­tended un­til April 12 to al­low suf­fi­cient time to dis­cuss rem­edy pro­pos­als that have been sub­mit­ted.

The trans­ac­tion is one of a trio of mega-deals re­shap­ing the global agro­chem­i­cals in­dus­try.

Reg­u­la­tors are con­cerned that the in­dus­try is a very con­cen­trated sec­tor and that farm­ers need to have a choice of seeds and crop­pro­tec­tion prod­ucts.

NAN SHAN / FOR CHINA DAILY

A vis­i­tor looks at a smart­phone by Huawei Tech­nolo­gies Co Ltd at an in­ter­na­tional tele­coms ex­hi­bi­tion in Bei­jing. Huawei sold 139 mil­lion hand­sets in 2016, up 29 per­cent from the pre­vi­ous year.

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