Exclusive: ChemChina's Syngenta acquisition close to clearing U.S. review - sources
- Apple (AAPL) Tops Q4 EPS by 2c; Issues Solid Outlook
- Wall Street slips on earnings; Apple falls late after results
- Chipotle Mexican Grill (CMG) Posts Q3 EPS of $0.27; Comps Miss Views; Additional Stock Buyback Approved
- Pandora (P) Misses Q3 EPS by 1c, Q4 Revenue Guidance Falls Short
- After-Hours Movers 10/25: (OGXI) (AKAM) (VRTX) Higher; (EW) (NUVA) (CMG) (AAPL) Lower (more...)
People use an escalator outside the headquarters of ChemChina (China National Chemical Corporation) in Beijing, China, February 4, 2005. REUTERS/Stringer/File Photo
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
By Greg Roumeliotis
(Reuters) - ChemChina's $43 billion acquisition of Syngenta AG
A positive end to the CFIUS review would remove significant uncertainty over whether the acquisition of the world's largest pesticides maker will be completed. Syngenta shares ended trading on Friday at 380.80 Swiss Francs ($396), some 100 Swiss Francs less than what ChemChina's offer valued the company.
Several U.S. lawmakers wrote to Treasury Secretary Jacob Lew earlier this year asking for CFIUS to subject the deal to additional scrutiny over its impact on domestic food security. The U.S. Department of Agriculture also joined the CFIUS review, Reuters previously reported.
Syngenta and ChemChina expect that CFIUS will clear their deal, and are hoping to announce a positive outcome as early as this week, the sources said on Sunday, cautioning that the outcome was not yet certain.
It could not be learned whether the two companies had agreed to any concessions in their negotiations with CFIUS for their deal to be approved.
The sources asked not to be identified because there has not yet been any official announcement on the CFIUS review. CFIUS, Syngenta and ChemChina did not immediately respond to requests for comment.
Syngenta said earlier this year it would make a voluntary filing with CFIUS "even though no obvious national security concerns were identified during due diligence".
Unveiled in February, the deal is the largest foreign acquisition ever by a Chinese company. It comes as China looks to secure food supplies for its population.
Syngenta, which is headquartered in North Carolina and generates nearly a quarter of its revenue from North America, is a key player in the market for pesticides and seeds. It has other facilities in North Carolina, as well a presence in California, Delaware, Iowa and Minnesota, among other states.
The CFIUS review is also being watched closely by Monsanto Co (NYSE: MON), the world's largest seed company, which is currently deliberating whether it should sell itself to Germany's Bayer AG
With a growing number of Chinese companies looking to acquire U.S. peers, CFIUS has emerged as a significant risk for such deals, particularly those with potential cyber security implications.
For example, in February, state-backed Chinese firm Unisplendor Corp <000938.SZ> scrapped a $3.78 billion investment in Western Digital Corp (NASDAQ: WDC) after CFIUS said it would investigate the transaction.
(Reporting by Greg Roumeliotis in NEW YORK; Editing by Sandra Maler and Kenneth Maxwell)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Misonix (MSON) Interim CEO Stavros Vizirgianakis Acquires 761K Shares
- White House urges ban on non-compete agreements for many workers
- Horizon Pharma (HZNP) Announces Completion of Raptor Pharma (RPTP) Acquisition
Create E-mail Alert Related CategoriesReuters
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!