ChemChina is nearing a deal to buy agribusiness group Syngenta for around $43bn in what would be China’s biggest-ever outbound acquisition, according to people close to the deal.
The companies are on the cusp of announcing a deal in which ChemChina would pay around SFr470 per share for the Swiss pesticide and seed maker, report Arash Massoudi, James Fontanella-Khan and Don Weinland.
The exact structure of a deal remains unclear, but a deal could be revealed as soon as Wednesday when Syngenta reports its result, these people said.
Friday is the last working day before much of East Asia is swept up in lunar New Year’s celebrations that will close mainland markets for a week. While the companies are pushing to finish before then, a person familiar with the deal said the size and complexity of the transaction could stand in the way of completion.
China National Chemical Corp, the company’s full name, has made several high-profile cross-border buyouts over the past decade. Led by its chairman Ren Jianxin, ChemChina bought Italian tyre maker Pirelli for $7.9bn last year, giving the Chinese state-owned firm a significant presence in the global tyre industry, in which it had little experience prior to the deal.
In January, ChemChina agreed to pay $1bn for Krauss Maffee, the German machinery company, and also bought a 12 per cent stake in Mercuria, valuing the Swiss energy trader at more than $3bn.
The Syngenta buyout would make ChemChina a dominant player in the $100bn-a-year agribusiness industry. Syngenta did not immediately respond to a request for comment.