Syngenta said the US has asked for more time to review its $43 billion takeover by China National Chemical, adding that it doesn’t expect the protracted scrutiny to delay the companies’ goal to close the deal in the first half.
The Federal Trade Commission is seeking more information from the chemical makers in order to complete its review, Syngenta spokesman Paul Minehart said Monday. “Things are going very well and we don’t expect the extension to cause a delay,” Minehart said.
Minehart said the deal could still win US approval before the April 12 deadline for a decision by the European Commission. The companies have proposed remedies designed to satisfy any concerns the merger could harm competition, Minehart said, without offering details.
The takeover, announced a year ago, is one of a trio of mega-deals that would reshape the global agrochemicals industry. The others are Dow Chemical’s bid to merge with DuPont and Bayer’s agreement to buy Monsanto. The combined transactions would whittle down six industry players to three behemoths: one American, one German and one Chinese.
Receiving a so-called second request on a merger review indicates antitrust officials want to scrutinize more deeply whether the proposed tie-up could harm competition, but it doesn’t always mean they intend to block the transaction. The FTC also vets remedies proposed by the companies to make sure any divestitures will replace competition lost as a result of the combination.
Full Content: Financial Times
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