Syngenta has announced that ChemChina has offered to acquire the company for $43 Billion.
“This offer, which is recommended unanimously by our Board of Directors, fully values the quality of Syngenta’s business portfolio, our people and our market positions around the world,” said Syngenta’s COO Davor Pisk. “It also underpins our current strategy and allows Syngenta to continue as a standalone company with very clear commitments to research and innovation.”
Syngenta’s existing management will continue to run the company. After closing, a ten member Board of Directors will be chaired by Ren Jianxin, Chairman of ChemChina, and will include four of the existing Syngenta Board members.
“One of the most important elements of this offer is that Syngenta remains Syngenta,” Pisk said. “Syngenta will maintain its identity, its strategy and its capabilities and we will continue to look to serve interests of agriculture around the world.”
The transaction will enable further expansion of Syngenta’s presence in emerging markets and notably in China.
According to Pisk, one of the most notable parts of the offer is that it preserves choice for growers.
“In our industry we are seeing a lot of consolidation,” Pisk said. “It is important that we preserve the maximum amounts of dollars that are allocated to researching for new innovations and we will continue to provide the maximum amount of choice to growers to help them deliver on the need for increasing productivity with stretched natural resources.”
Syngenta will remain headquartered in Switzerland as part of the agreement. The deal will also include intent for a partial Syngenta IPO in the future.