The Committee on Foreign Investment in the United States (CFIUS) has granted clearance to the proposed acquisition of Syngenta by ChemChina. According to a joint statement, the companies have now overcome an important hurdle.
Experts initially had concerns that the US would grant clearance. The transaction is now subject to anti-trust review by numerous regulators around the world. Both companies are working closely with the relevant regulatory agencies and the discussions are constructive, according to the statement.
Syngenta expects the transaction to close by the end of the year. ChemChina will pay USD 43 billion to acquire the Basel-based agrochemical company. If the transaction closes as expected, this will mark the largest Chinese acquisition abroad to date.
ChemChina made several acquisitions in Europe last year. Around one year ago, it acquired the Italian tire company Pirelli. In January of this year, it acquired the German manufacturer of specialty machines KraussMaffei and the Geneva commodities trader Mercuria Energy Group.