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The
deal, the largest foreign acquisition by a Chinese company, is
one of several that is reshaping the international market for
agricultural chemicals, seeds and fertilizers even as they
trigger fears among farmers that the pipeline for new herbicides
and pesticides might slow.
Reuters reported on Feb. 2 that the deal would be cleared with
conditions.
The European Commission said the asset sales addressed its
competition concerns.
"It is important for European farmers and ultimately consumers
that there will be effective competition in pesticide markets,
also after ChemChina's acquisition of Syngenta," European
Competition Commissioner Margrethe Vestager said in a statement.
Syngenta shares were trading up 1.5 percent after the EU's
antitrust clearance was announced.
ChemChina will sell a large chunk of its subsidiary Adama's
pesticide, herbicides and insecticides business, its seed
treatment products for cereals and sugar beet and a substantial
part of its plant growth regulator business for cereals.
Some of Syngenta's pesticides will also be put on the block.
World No. 1 pesticides maker Syngenta sells its products in more
than 90 countries under such brand names as Acuron, Axial,
Beacon and Callisto. It sells seeds such as cereals, corn, rice,
soybeans and vegetables.
U.S. antitrust authorities nodded the deal through on Tuesday on
condition that ChemChina divest three products.
The EU approval came a week after it cleared the $130 billion
Dow Chemical <DOW.N> and DuPont <DD.N> merger in return for
hefty asset sales including global research and development
facilities.
(Reporting by Foo Yun Chee; editing by Philip Blenkinsop)
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