ChemChina to acquire Syngenta

A Chinese state-owned chemical maker offered to buy Swiss pesticide giant Syngenta for $43 billion in what would be the biggest-ever foreign acquisition by a Chinese company.

Syngenta said Wednesday that its board is recommending shareholders accept the offer from China National Chemical Corp., also known as ChemChina. Baselbased Syngenta said in a statement that ChemChina’s cash offer is worth about $480 a share, including a special dividend for shareholders of about $5 if the deal goes through.

The deal is part of a global acquisition spree by Chinese companies, which are diversifying abroad to counter a slowdown at home while also seeking foreign expertise and technology. Last month, Chinese home appliance maker Haier Group bought General Electric’s home appliance business, and conglomerate Dalian Wanda Group acquired Hollywood movie studio Legendary Entertainment.

The deal is expected to be completed by the end of the year. Beijing-based ChemChina said it would consider an initial public offering of the business “in the years to come.”

The deal is also part of a shake-up of the global agricultural and chemical industry, which is being pressured by tumbling commodity prices that are causing farmers to spend less on seeds, pesticides and equipment.

Syngenta reported Wednesday that its 2015 profit fell 17% to $1.3 billion as it struggled with low crop prices, instability in emerging markets and currency fluctuations.

For China, it’s an opportunity to beef up its expertise in the “ag-chem” industry as part of President Xi Jinping’s plan to modernize the country’s farms to keep up with demand from a rising middle class.