Reuters: Syngenta Weighing Options With ChemChina, Monsanto, Other Corps
Syngenta is in talks about a possible merger and is weighing a number of options, the Swiss agrichemicals group's chairman said on Wednesday.
Michel Demare said last month that the crop chemicals and seeds company was in talks with China's state-owned ChemChina, U.S. seeds giant Monsanto and others.
When asked about the prospect of Syngenta possibly becoming a Chinese company, Demare said: "We are at a stage where we are looking at different combinations. I'm just saying it's one of them. Everybody has spoken to each other."
ChemChina, which is being advised by HSBC, is seeking a loan package by several large Western banks to fund a possible Syngenta takeover deal, which later may be refinanced by Chinese banks, several sources familiar with the matter said.
A takeover of Syngenta by ChemChina would underpin an effort by the Chinese government to boost farming productivity, as it seeks to cut reliance on food imports amid limited farm land, a growing population and higher meat consumption.
ChemChina has a 5 percent share of the global crop chemicals market through its ownership of Israeli generic pesticides maker Adama.