ChemChina offers $43B for Swiss pesticide giant Syngenta

HONG KONG – A Chinese state-owned chemical maker offered to buy Swiss pesticide giant Syngenta for $43 billion in what would be the biggest foreign acquisition by a Chinese company.

Syngenta AG said Wednesday its board is recommending shareholders accept the offer from China National Chemical Corp., also known as ChemChina. Basel-based Syngenta said in a statement that ChemChina’s cash offer is worth the equivalent of $477 a share, including a special $4.97 dividend for shareholders if the deal goes through.

The deal is part of a global acquisition spree by Chinese companies, which are diversifying abroad to counter a slowdown at home while also seeking foreign expertise and technology. Last month, Chinese home appliance maker Haier Group bought General Electric’s home appliance business while conglomerate Wanda Group acquired Hollywood movie studio Legendary Entertainment.

The Syngenta deal, if completed, would overtake CNOOC’s 2012 purchase of Canadian energy company Nexen as the largest foreign acquisition by a Chinese company, according to Dealogic data.

Beijing-based ChemChina will keep existing Syngenta management in place following the deal, which is expected to be completed by the end of the year. It said it would also consider an initial public offering of the business “in the years to come.”

Syngenta agreed to the takeover bid after spurning a $46.5 billion offer from agricultural giant Monsanto.