US approves ChemChina's $43 bn takeover of Syngenta

[WASHINGTON] US antitrust regulators approved ChemChina's US$43 billion takeover of Swiss pesticide and seed giant Syngenta after they agreed the Chinese company must sell three products, the Federal Trade Commission said Tuesday.

Under a preliminary settlement, the FTC said it required the divestitures to address a loss of competition over the herbicide paraquat and two other products in which the merger would have likely led to higher prices for consumers.

The US federal agency said the deal, as originally proposed, created antitrust problems because ChemChina's generics subsidiary ADAMA is either the first- or second-largest generics supplier in the United States for the three products in question.

The other two products are the insecticide abamectin, which protects primarily citrus and tree nut crops, and the fungicide chlorothalonil, which protects peanuts and potatoes.

The FTC settlement is subject to public comment for 30 days after which the commission will determine whether to finalise it.

Syngenta said in February it expects the transaction with ChemChina to close in the second quarter. The takeover would mark the largest overseas takeover by a Chinese firm.

AFP