U.S. clearance for ChemChina deal sends Syngenta stock soaring

[cali]

U.S. national security panel has cleared ChemChina's $43 billion takeover of Swiss pesticides and seeds group Syngenta (SYNN.S), the companies said, boosting chances that the largest foreign acquisition ever by a Chinese company will go through.

The decision removes significant uncertainty over the takeover of the world's largest pesticides maker after the two companies agreed a deal in February.

Syngenta did not disclose whether it had made concessions to secure approval but indicated that any such steps would not have a significant impact on its business.

Syngenta shares jumped 11.2 percent by 0900 GMT (0500 ET) to 423.4 Swiss francs ($439.7). ChemChina's $465 per share cash offer values the company at around 448 francs at current exchange rates plus a special five-franc dividend.

Kepler Cheuvreux analyst Christian Faitz called the step a "major milestone for the deal", adding in a note to clients that

"approval removes a major potential hurdle and should come as a relief to Syngenta shareholders". Kepler Cheuvreux rates Syngenta shares a "Buy". Reuters reported earlier on Monday that the acquisition was in the final stages of being cleared by a U.S. panel that scrutinizes deals for national security implications.

"China National Chemical Corporation (ChemChina) and Syngenta today announced that the companies have received clearance on their proposed transaction from the Committee on Foreign Investment in the United States (CFIUS)," a joint statement released by Syngenta said.

The statement made no mention of any concessions required to win clearance.

<snip>

http://www.reuters.com/article/us-syngenta-ag-m-a-chemchina-approval-idUSKCN10X0DS

[RapSoDee]

1. Expect a massive wave of new multinational Chem-GMO-Pharma Trolls

As if we did not have a surplus already.

[Recursion]

2. Why is the USG weighing in on the acquisition of a Swiss company by a Chinese company? (nt)

[cali]

3. Could it be this?

<snip>

Several U.S. lawmakers wrote to Treasury Secretary Jacob Lew 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 had said 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 comes as China looks to secure food supplies for its population.

Syngenta is a key player in the market for pesticides and seeds. It has facilities in North Carolina, as well a presence in California, Delaware, Iowa and Minnesota among other states.

The CFIUS review is being watched closely by Monsanto Co, the world's largest seed company, which is deliberating whether it should sell itself to Germany's Bayer AG. Syngenta last year turned down offers to be acquired by Monsanto.

<snip>

http://www.cnbc.com/2016/08/22/us-watchdog-clears-chemchinas-takeover-of-syngenta.html

[TheBlackAdder]

4. My Emerging Economies course had peer research that China is on a Global land acquisition initiative

.


They have acquired rights to millions of acres of Central and South American croplands.

Millions of acres of cropland in Africa, and millions of others scattered across the Pacific rim and Eurasia.


While US companies act at a corporate level, China is acting as a Nation State, securing food and natural resources that will carry themselves into the next century. The acquisition of a fertiliter, seed and pesticide company makes perfect sense.



.

[SticksnStones]

5. So this is a good move then?

When humans of any nation have access to enough affordable food and clean water, isn't the world a calmer place?

[TheBlackAdder]

7. It's good if your China. They uses their labor, not local labor, which is creating local poverty.

.


They bring in workers from the mainland to manage and care for their fields.


.

[SticksnStones]

8. I see...

I'd like to read more about that. Can you point me in a general direction? Which country in particular? Thx ~

[TheBlackAdder]

9. The stuff I have is accessable via and EDU account, one database is JSTOR. All copyrighted.

.


I'm sure there is a bunch of stuff via Google that may or may not be peer reviewed.


A quick few:


"Food, Fuel, and the Global Land Grab" Brown

"The New Mercantilism: China's Emerging Role in the Americas" Farnsworth

"Lions, Tigers, and Emerging Markets: Africa's Development Dilemmas" Pitcher

"The Democratic Malaise: Globalization and the Threat to the West" Kupchan


Film: "WE FEED THE WORLD" is interesting to watch.


.

[SticksnStones]

10. Thank you for that effort

Gives me a starting point to google -

[TheBlackAdder]

11. I added a couple more.

[cali]

6. thanks for that information.