Syngenta-ChemChina: merger is OK for US antitrust

US regulators have agreed to a Chinese conglomerate’s proposed $43 billion acquisition of Swiss agribusiness giant Syngenta on condition it sells some businesses to satisfy anti-monopoly objections.

China National Chemical and Switzerland's Syngenta have agreed to divest three types of pesticides in order to win U.S. Federal Trade Commission approval for their $43 billion merger, the largest ever overseas acquisition by a Chinese company. A U.S. national security panel cleared the deal in August 2016, despite concerns among some lawmakers and farmers about China's influence in U.S. food production.

To secure the Syngenta deal, ChemChina agreed to divest several pesticides manufactured by Adama Agricultural Solutions Ltd., an Israeli-based ChemChina subsidiary that focuses on generic chemicals.
Terms of the deal weren't disclosed. "We are comfortable with the outcome and most important, Syngenta will continue to provide a high quality, broad portfolio of products and solutions to U.S. farmers," a Syngenta spokesman said. 

Syngenta had $13.4 billion in sales in the United States in 2015, according to a company report.

ChemChina currently has a April 28 deadline for tendering of Syngenta shares. The deadline is expected to be extended until all regulatory approvals and other closing conditions are met. Authorities in the European Union, China, India and Mexico are still reviewing the deal.

The Syngenta deal was well underway before President Donald Trump's appointees were assigned to leadership positions at the antitrust agencies so it's a stretch to say this approval is an indication of whether the other mergers will receive conditional approval too.