SYNGENTA / CHEMCHINA
THE HOUSE OF THE FLYING CHATTER…
PIVOTAL QUESTIONS:
We think the pivotal questions in the context of the recent news flow that investors should ask are:
Why now?
Who has a vested interest to create turmoil and uncertainty for the deal and who is likely to benefit from this?
MAKOR VIEW:
We wanted to clarify our view on the transaction following a spate of contradictory news-flow around the transaction over the past week.
We remain convinced that the transaction remains on track, and today’s news-flow in particular has created significant confusion among investors and had an adverse effect on Syngenta’s share price.
Ultimately, the current uncertainty around the transaction conclusively benefits and strengthens the negotiating position of the potential investors in CITIC’s $25bn syndication as the reported difficulties around securing the financing only entrenches their position.
We continue to believe that the Chinese Government remains fully committed to the transaction.