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Syngenta shares jump after US clears Chem China deal

Posted on: Aug-2016 | By: 9Dimen Group | Business Services

Shares in Swiss agribusiness group Syngenta have risen 12% after its takeover by ChemChina was given the go-ahead by a US regulator. The $43bn deal is the biggest ever foreign takeover by a Chinese company.

The deal was cleared by the Committee on Foreign Investment in the United States (CFIUS) which checks deals for national security implications. About a quarter of Syngenta's sales are in North America.

China National Chemical Corporation offered $465 per share for Syngenta in February. Syngenta's shares subsequently fell to about 20% below that because of the uncertainty lingering over US decision.

When the deal was announced earlier this year, Syngenta chairman Michel Demaré said that it would help the company's pesticides and seeds business to expand further in China. The Chinese company owns a variety of businesses, included the Italian tyre maker Pirelli, German machinery-maker KarussMaffei and Israel's biggest pesticides producer.

The deal would be the second-biggest takeover in the chemicals industry in the past year after the $130bn Dow Chemical-DuPont merger announced last December.