ChemChina Nears Deal to Buy Syngenta Stake

China National Chemical Corp. is nearing a deal to buy a controlling stake in Syngenta AG for over $40 billion, according to people familiar with the matter.

The deal could be announced as soon as Wednesday, although it could still fall apart, the people said.

If consummated, the transaction would represent the largest foreign acquisition by a Chinese company. Terms of the deal call for a price of about 470 Swiss francs ($460.9) a share.

Shares in Syngenta rose after The Wall Street Journal first reported the news.

The deal would mark the latest consolidation of the chemicals sector after DuPont Co. and Dow Chemical Co. announced their merger. The trend is shrinking the number of companies that dominate the global seed and pesticide business.

U.S. chemical company Monsanto Co. kicked off the current deal making wave last spring when it proposed to buy Syngenta. After unsuccessfully courting Syngenta investors and sweetening its offer to $46 billion in cash and stock, Monsanto dropped its pursuit in August.

Since then, Syngenta has said that it is discussing possible deals with multiple parties, a shift in its initial resistance to a takeover.

Write to Rick Carew at [e-mail], Shayndi Raice at [e-mail] and Eyk Henning at [e-mail]

(END) Dow Jones Newswires

February 02, 2016 08:05 ET (13:05 GMT)

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