ChemChina offers $43B for Swiss pesticide giant Syngenta

The offer is about 20 percent higher than Syngenta’s last close of 392.30 Swiss francs ($385) on February 2.

Agricultural experts believe the purchase of Syngenta would help China in securing technology for genetically modified (GMO) seeds that are becoming increasingly vital in expanding production of major oilseeds such as soybeans and cotton. ChemChina was not immediately available for comment outside regular business hours.

Created 12 years ago out of a bunch of companies run by a government ministry, ChemChina has shown a strong appetite for overseas deals in Europe and beyond.

Behind the Chinese company’s pursuit are national interests. The World Bank estimates that China’s arable land declined 6 percent in the last decade as economic growth boomed.

The potential transaction would be the largest acquisition by a Chinese firm and make ChemChina the leading pesticide and agrochemicals supplier in the world, Bloomberg added.

Syngenta would trump all past deals in a country whose appetite for foreign assets is surging. In March it bought Italian tire manufacturer Pirelli. This year’s tally is on pace to exceed 2015’s record $123.9 billion, according to data compiled by Bloomberg. It recently announced it would buy Germany’s KraussMaffei Group, a maker of machinery for producing plastics and rubber.

Basel-based Syngenta said in a statement that Beijing-based ChemChina’s cash offer is worth the equivalent of 480 francs ($482) a share.

Pressure is also building on Monsanto.

Syngenta is one of a handful of companies that dominate the production of GMO crops – others include Bayer AG and Dow Chemical Co. and DuPont Co., which said in December they will merge.

“The discussions between our two companies have been friendly, constructive and co-operative, and we are delighted that this collaboration has led to the agreement announced today”, ChemChina Chairman Ren Jianxin said.