Next Mega–Merger: Chemchina to Take Over Syngenta

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Today everything points towards a takeover in the chemical industry: Analysts assume that the strong M&A-activity in the chemicals industry will also continue in 2016. “With the increasing volume of Mergers & Acquisitions more and more companies have to face the question of how the takeover or the fusion can have the desired effect in the view of increasing market volatility”, says Dr. Sven Mandewirth, Partner and Industry Lead for the chemical branch from the consulting agency Camelot, on the challenges for the relevant companies.

Winners and Losers

In the emerging takeover battle, Monsanto in particular had an eye on the Swiss agrochemical specialist, but the management at Syngenta vehemently rejected a fusion with the American company. It remains unclear whether the concerns about the independence as a company or the antitrust concerns will tip the scales. In any case the American company withdrew its takeover bid of 465 dollars per share in 2015 itself, which resulted in stock prices of Syngenta plummeting. Now Chemchina is seizing the opportunity.

“The discussions between our companies were friendly and constructive and we are glad that the collaboration has led to the agreement announced today, explained Ren Jianxin, Chairman of Chemchina. “We shall continue to work together with the management and the employees of Syngenta to ensure the competitive advantage of the company in the worldwide agricultural technology.” For Syngenta the Chinese market opens in this way: The growing agricultural sector but also increasing environmental awareness in China can play into the hands of the Swiss.

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Chemchina Places Offer for Syngenta

Next Mega–Merger: Chemchina to Take Over Syngenta

Winners and Losers