Yahoo Finance Swiss Firm In Biggest Ever China Takeover
State-owned firm ChemChina has agreed to takeover Swiss pesticide and seeds giant Syngenta (LSE: 0QOP.L - news) in a $43bn (£29.8bn) deal, the biggest ever overseas acquisition by a Chinese firm.
The deal is a setback for US rival Monsanto (Hamburg: 1132157.HM - news) which last year made an unsuccessful $46.5bn (£32.2bn) move for Syngenta.
Syngenta said it was recommending the ChemChina deal to shareholders.
It (Other OTC: ITGL - news) suggests that the recent turmoil in Chinese stock markets and the slowdown in its economic growth has not held back its global buying spree.
Instead, firms are looking to counter the downturn by diversifying abroad while seeking foreign expertise and technology.
Last month, Chinese home appliance maker Haier Group bought General Electric's home appliance business while conglomerate Wanda Group bought Hollywood film studio Legendary Entertainment.
ChemChina last month bought German machinery maker KraussMaffei for about $1bn (£700m) and has taken a 12% stake in Swiss energy trader Mercuria. Last year it bought Italian tyre maker Pirelli.
Chinese interests have big investments in the UK. Department store House of Fraser is Chinese-owned while China is investing in the Hinkley Point nuclear plant.
The Syngenta deal is part of a global shake-up of the global agricultural and chemical industry which is under pressure from tumbling commodity prices that are squeezing spending on seeds, pesticides and equipment.
It comes as the Swiss firm reported a 17% fall in net income to $1.3bn (£900m).
Syngenta chairman Michael Demaré said the Chinese takeover was a "very good deal".
ChemChina chairman Ren Jianxin said the deal was "all about growth".
He said: "We see big opportunities for the company to expand its presence in emerging markets and notably in China where there is rapid modernization driven by the need to increase grain productivity and increase food quality."
