Syngenta CEO confident ChemChina takeover closing within Q2

Swiss pesticides and seeds group Syngenta reported 2016 earnings before interest, tax, depreciation and amortisation (EBITDA) of $2.66 billion on sales of $12.79 billion.
Analysts polled by Reuters had on average expected EBITDA to fall 5.9 percent to $2.61 billion on sales down 4.2 percent to $12.85 billion. They had expected it to boost its dividend to 11.60 Swiss francs from 11.00.

"Overall the year was a challenging one for the industry," CEO Erik Fyrwald said. Still, the company expects low single-digit growth in sales after adjusting for currency changes.

“For the full year 2017, we expect low single digit growth in sales at constant exchange rates. We are targeting an improvement in the EBITDA margin and another year of strong free cash flow generation", the note added.

The CEO said Wednesday that good progress is being made on regulatory approval of the proposed $43 billion acquisition of the Swiss seed and pesticide maker by ChemChina and that he expects the deal to close in the second quarter.

"Each day we grow increasingly confident," Mr. Fyrwald said in an interview after the company released its 2016 results.

Syngenta said it has received regulatory approval from 13 authorities and that approvals are pending from Brazil, Canada, India, Mexico, the U.S. and European Union. The European Commission, the bloc's antitrust regulator, has given itself until April 12 to decide on the deal, which it is scrutinizing alongside other deals in the sector, including Dow Chemical and DuPont Co. and one between Bayer and Monsanto..

The decision from European regulators could come before April 12, he added.