Syngenta turns down $42bn ChemChina bid

The offer was rejected due to regulatory concerns by Syngenta’s management, but the two companies haven’t broken off talks, Bloomberg reported.

Syngenta AG, the world’s largest agrichemical company, has rejected an initial $42-billion takeover offer from China National Chemical Corp (ChemChina), Bloomberg yesterday reported, citing people with knowledge of the matter.

Syngenta and ChemChina could not immediately be reached for comments.

Acquiring Syngenta would help ChemChina further its worldwide expansion ambitions, as well as enhance its technological know-how, industry experts said.

The company has a history of acquiring interests in Western specialty chemicals businesses.

Syngenta is the world’s largest producer of agricultural pesticides, including chemicals that kill weeds and bugs. “Only state-owned firm is able to make such offer”, he added.

Monsanto this year offered to buy Syngenta for 449 francs a share, the same price now reportedly offered by ChemChina.

Shares in Syngenta surged 7.8% in early trading in Switzerland to CHF372.6.

The Swiss company turned down the approach saying it undervalued the company and would face opposition from regulators.

A few shareholders have chided the Swiss group’s management for its defensive stance and questioned the company’s ability to improve its financial fortunes as demand for agricultural commodities remains weak.

Syngenta announced share buyback program of more than $2 billion in September to appease the shareholders.