EU approves ChemChina's takeover of Syngenta with condition
BRUSSELS -- The European Union (EU) regulators gave green light to ChemChina's merger of Swiss Syngenta with condition on Wednesday.
The company logo of China National Chemical Corp, or ChemChina, is seen at its headquarters in Beijing, China February 3, 2017. [Photo/Agencies]
"ChemChina has offered significant remedies, which fully address our competition concerns. This has allowed us to approve the transaction," the EU Commissioner for competition Margrethe Vestager told a press conference.
Syngenta is a leading pesticide supplier worldwide. ChemChina is currently active in pesticide markets in Europe through Adama, its wholly-owned Israel-based subsidiary which is the world's biggest producer of generic pesticides.
The approval came following a set of commitments made by ChemChina as the commission had concerns that the merger would have reduced competition in a number of existing markets for pesticides and plant growth regulators, said the European Commission, the bloc's executive body which overseas competition policy.
To win the approval, ChemChina has promised to divest significant parts of Adama and Syngenta pesticides and plant growth regulator business, said the commission in a statement.
The deal, worth up to 43 billion US dollars, was reported to gain approval from the U.S. regulators on Tuesday.