U.S. clears China takeover of Syngenta

BEIJING — China National Chemical Corp. said Monday that a U.S. national security panel has cleared its proposed acquisition of Swiss agricultural chemicals company Syngenta.

The $43 billion acquisition still requires approval from antitrust and other regulators in the United States and other countries, the state-owned company also known as ChemChina said in a two-sentence statement.

If completed, the deal would be the biggest foreign acquisition to date by a Chinese company. Swiss shares in Syngenta jumped over 11 percent on Monday’s news of the security clearance.

A group of U.S. legislators called in March for a review by the Committee on Foreign Investment in the United States. They cited the potential for “risks to our food system” and the U.S. agriculture industry.

The committee, led by the U.S. Treasury Department, has objected to a handful of Chinese purchases of U.S. technology industries, but almost all acquisitions have been approved. Still, mergers consultants say the prospect of undergoing a committee review has put off some potential Chinese buyers of U.S. assets, making acquisitions in Europe and other markets look more attractive.

The Syngenta bid, if successful, will be one of a number of global acquisitions by Chinese companies that are looking for technology, brands and new markets to speed their development.