On Wednesday, Syngenta (NYSE: ADR) board member seeks approval of the $43 Billion offer from ChemChina. But just six months ago, Syngenta said no to a $47 billion takeover attempt from Monsanto, arguing it was too risky.
This is because times have changed. Commodities prices have slumped, decreasing the chances of a big payday for Syngenta, one of the world’s biggest manufacturers of agricultural chemicals and seeds. China is on the hunt for strategic resource deals to provide for the long-term security of its huge population.
So when the state-owned China National Chemical Corporation offered to buy Syngenta for $43 billion — but leave Syngenta’s Swiss headquarters and management in place — the answer was an enthusiastic yes.
The transaction, announced Wednesday, would be the largest acquisition of a foreign company by a Chinese business and the latest in a string of deals by the company, known as ChemChina. It also would be the biggest cross-border deal involving an Asia-Pacific company.
Under the terms of the deal, ChemChina would pay $465 a share, plus a special dividend of five Swiss francs, or about $4.90, upon closing. That would be the equivalent of 480 francs a share, representing a 22 percent premium to Syngenta’s closing price on Tuesday.