Syngenta-ChemChina deal likely to be delayed until early 2017

Syngenta shares have been trading below the value of the ChemChina takeover offer on concern that regulators could significantly delay or even block the transaction
Syngenta shares have been trading below the value of the ChemChina takeover offer on concern that regulators could significantly delay or even block the transaction

Syngenta has said its takeover by the state-owned China National Chemical Corporation could be delayed until early 2017.

ChemChina said they are ready to offer more concessions to win European Union antitrust approval for its $43 billion bid.

"In a context of industry consolidation, regulators in the EU and elsewhere have recently requested a large amount of additional information and we now expect the regulatory process to extend into the first quarter of 2017," Syngenta chief executive Erik Fyrwald said in a statement.

"ChemChina and Syngenta remain fully committed to the transaction and are confident of its closure."

Previously, the company had expected the deal to close by the end of this year.

In an interview Tuesday, Mr Fyrwald said that the announcement in September of the proposed acquisition prompted more requests for information 'than we'd ever seen before' from regulators.

Syngenta shares have been trading below the value of the ChemChina takeover offer on concern that regulators could significantly delay or even block the transaction.

The Monsanto takeover of Bayer had changed the shape of the agrichemicals sector and the EU Commission would therefore take more time to look into the ChemChina-Syngenta deal.