Sinochem is poised to make further concessions, allowing EU antitrust agencies to approve its $ 43 billion acquisition of Swiss pesticide and seed group Syngenta.
Syngenta's shares fell more than 9% on Monday after a spokesman for the European Commission said that the two companies had not made concessions in exchange for approval. This raises concerns that the EU antitrust agency may conduct a comprehensive and longer investigation into the case.
It is reported that China National Chemical submitted a proposal to the European Commission in September, including the divestiture of approximately $ 20 million in assets from its agricultural chemical branch, Adama Agricultural Solutions. But the European Commission said the divestiture plan was not enough and proposed a "more detailed remedy" at a meeting with the two companies last week. ChemChina is ready to cooperate fully with the European Commission and will propose a remediation plan that meets the requirements of the regulators.
Syngenta said earlier on Tuesday that regulators in the European Union and elsewhere have requested a large number of additional documents, and the company currently expects the regulatory approval process to continue into the first quarter of 2017. Syngenta said it remains confident in the approval of the transaction.
The acquisition of Syngenta by China Chemical is the largest overseas acquisition in Chinese history.