State-owned ChemChina seeks approval from EU for $43bn takeover of Syngenta

CHINA National Chemical Corporation (ChemChina) sought EU approval for its $43bn takeover of Syngenta, one of a trio of mega-deals reshaping the global agrichemicals industry already described as “quite concentrated” by the bloc’s antitrust chief.

The European Commission set an initial October 28 deadline to rule on the deal, according to a website filing on Monday.

ChemChina agreed to buy Syngenta earlier in 2016 in a deal that would transform it into the world’s largest supplier of pesticides and agrochemicals. It is the biggest foreign acquisition for a Chinese firm. ChemChina, which is state-owned, received approval from US national security officials for the takeover in August.

The deal is the second of three tie-ups between companies that sell seeds and chemicals to global farmers. EU regulators opened a probe into a Dow Chemical and DuPont merger in August and suspended the deadline early in September to seek missing data.

EU legislators and environmental campaigners are urging EU Competition Commissioner Margrethe Vestager to block Bayer’s bid for Monsanto.

Vestager said last week that the agriculture input market is already dominated by a small number of firms and less competition for farmers risks leading to higher prices and less choice for food. She has cited concerns about concentration in research and development, especially for plant protection products.

The deal was not granted a fast-track procedure that can allow an unconditional clearance. Regulators can choose to open a longer investigation if they see potential competition problems.