ChemChina gets U.S. security clearance for Syngenta buyout

China National Chemical Corp. received approval from U.S. national security officials for its takeover of Swiss agrochemical and seeds company Syngenta, seen as the biggest regulatory hurdle that the $43 billion acquisition faces.

The Committee on Foreign Investment in the U.S. has cleared the transaction, the companies said in a statement Monday. The deal, expected to be completed by the end of the year, is still subject to antitrust review by regulators worldwide, according to the statement.

“The CFIUS approval removes a major potential hurdle and should come as a relief to Syngenta shareholders,” said Christian Faitz, an analyst at Kepler Cheuvreux.

Shares of Syngenta jumped. Since announcing the deal in February, the stock has traded below ChemChina’s bid price amid investor concerns that regulators in the U.S. might block the deal.

The takeover is leading a record wave of Chinese acquisitions that has prompted U.S. officials to consider claims that some purchases could threaten national security.

Syngenta, which got more than a quarter of its revenue last year from seeds and crop protection in North America, would help transform stateowned ChemChina into a global pesticide and agrochemical giant.

CFIUS, which is led by the Treasury Department and includes officials from the Defense and State departments, reviews acquisitions of U.S. businesses by foreign investors for risks to American security and can recommend that deals be blocked. The committee often imposes conditions on transactions before clearing them, such as restricting the foreign company’s access to parts of the U.S. business.

ChemChina and Syngenta didn’t disclose the details of the deal with CFIUS, with the Swiss company adding in an emailed response that “any mitigation measures are not material to Syngenta’s business.” The Treasury Department declined to comment.

The deal has come as other players in the agrochemical and seeds industry plan to merge, or are holding talks together. Dow Chemical Co. is combining with DuPont Co., and Bayer is targeting genetically modified seeds maker Monsanto Co.