22% Annual Return From Syngenta
Chris DeMuth Jr. • 65 Comments
Chris DeMuth Jr. • 65 Comments
Fri, Oct. 14, 4:47 PM
- ChemChina and Syngenta (NYSE:SYT) are prepared to offer concessions to European Union antitrust regulators to ease concerns over their proposed $43B merger, Reuters reports.
- The companies reportedly will meet European Commission officials on Monday, hoping to remove concerns but ready to propose concessions if they cannot convince the regulator to get the deal approved during a preliminary review.
- Such a proposal would trigger a 10-working day extension to the Commission's deadline of Oct. 28.
Fri, Oct. 14, 4:28 AM
- As China looks to slash the number of state-owned companies to create larger industry players, Sinochem and ChemChina have begun discussions about a possible merger to create a chemicals, fertilizer and oil giant with almost $100B annual revenue.
- While still at an early stage, the talks come as as ChemChina finalizes a $43B takeover of Syngenta (NYSE:SYT), which would be China's largest-ever foreign investment.
Mon, Oct. 10, 12:34 PM
- Bridge financing is "committed and irrevocable" for ChemChina's $43B takeover of Syngenta (SYT -1.5%), the Swiss company says following a report on Chinese news outlet Caixin that the acquisition had hit a snag as a $15B piece of the deal's funding remains missing.
- ChemChina is borrowing heavily to buy SYT as China seeks new agricultural technology to bolster its growing population's food supply.
Tue, Sep. 27, 9:21 PM
- A U.S. district court judge in Kansas rules that lawsuits brought by U.S. farmers against seed company Syngenta (NYSE:SYT) over sales of biotech corn seeds not approved for import by China can proceed as a class action.
- Farmers from major U.S. corn-producing states sued after grain shipments containing traces of SYT's Agricure Viptera corn were rejected by China, which had not approved the variety for import; farmers who did not plant Viptera corn claimed they suffered losses when the rejections that began in late 2013 disrupted trade and dragged down corn prices.
- SYT, which says it may appeal the court decision, has said it is not responsible for the losses and that it launched Viptera corn in full compliance with all regulatory and legal requirements.
Mon, Sep. 26, 8:58 AM
- ChemChina has filed for European Union antitrust approval for its $43B takeover bid for Syngenta (NYSE:SYT), with a decision expected by Oct. 28.
- The EU can either clear the deal, with or without concessions, or it can open a full investigation if it has serious concerns that ChemChina's takeover could harm customers and rivals.
- ChemChina has cleared one of the biggest hurdles in its bid, when a U.S. national security panel last month approved the deal.
Wed, Sep. 21, 2:54 PM
- German lawmakers lashed out in skepticism today at Bayer's (OTCPK:BAYRY -0.9%) planned takeover of Monsanto (MON +1.1%) in a meeting of parliament that highlighted the backlash Bayer faces in its home market against buying a company that many Germans see as a champion of genetically modified crops.
- Eight of the 12 lawmakers who spoke, including three members from within Chancellor Merkel’s coalition, criticized the deal; the lawmakers have no legislative authority to stop the deal, but some are calling on regulators to do so.
- The deal also drew scrutiny at the U.S. Senate Judiciary Committee yesterday, where Sen. Grassley said the deal was part of a "tsunami of consolidation" that could reduce choice and raise the price of chemicals and seed for farmers, which ultimately would affect choice and costs for consumers.
- Company execs - including some from DuPont (DD +0.4%), Dow Chemical (DOW -0.1%) and Syngenta (SYT +0.2%) - sought to allay concerns and reassure lawmakers that they would keep licensing new types of seeds to smaller companies.
Wed, Sep. 7, 8:59 AM
- Syngenta (NYSE:SYT) says CFO John Ramsay will retire at the end of September after spending 32 years at SYT and legacy companies.
- Mark Patrick, currently SYT’s head of commercial finance and a 23-year company veteran, will succeed Ramsay.
- Ramsay served as interim CEO until June, and SYT says he was central to its pending merger with ChemChina.
Tue, Sep. 6, 5:32 AM
- ChemChina has secured commitments from 17 lenders on a $12.7B loan for its purchase of Syngenta (NYSE:SYT), sources told Bloomberg.
- ChemChina agreed to buy Syngenta for $43B earlier this year in a deal that would transform it into the world’s largest supplier of pesticides and agrochemicals.
- It received takeover approval from U.S. last month, though the deal is still subject to antitrust review by regulators worldwide.
Fri, Aug. 26, 9:42 AM
- Major international seed companies Monsanto (NYSE:MON), Bayer (OTCPK:BAYRY), Dow Chemical (NYSE:DOW), DuPont (NYSE:DD) and Syngenta (NYSE:SYT) form an alliance to oppose the Indian government's proposal that would force them to share their genetically modified crop technology with local players.
- A Bayer exec says no one would invest in research if the proposed introduction of compulsory licensing - which would force a company to share its intellectual property upon government request - is implemented.
- The show of solidarity comes after MON, which pioneered the use of GM cotton in India, withdrew an application for its next-generation product from the approvals process on concerns over the security of its intellectual property.
Tue, Aug. 23, 5:56 PM
- The U.S. Senate Judiciary Committee announces plans to hold a hearing in late September to discuss the mergers of Dow Chemical (NYSE:DOW) and DuPont (NYSE:DD) as well as ChemChina's purchase of Syngenta (NYSE:SYT).
- Committee chair Sen. Grassley of Iowa has expressed concern that the deals would result in farmers paying more for seeds, pesticides and herbicides and reduce the companies' incentives to innovate.
- The committee has no formal say over whether the deals may go forward; the Justice Department is reviewing the Dow-DuPont merger, while the FTC is looking at ChemChina's purchase of Syngenta.
Mon, Aug. 22, 2:02 PM
Mon, Aug. 22, 9:12 AM
Mon, Aug. 22, 3:19 AM
- The Committee on Foreign Investment in the United States (CFIUS), which studies M&As for national security implications, has cleared ChemChina's $43B acquisition of Swiss pesticides and seeds company Syngenta (NYSE:SYT).
- In a statement, the firms didn't mention any concessions required, but they did say they expect to close the deal later this year as they work to receive anti-trust approval from authorities around the world.
- The transaction is of concern to the U.S. as Syngenta has facilities in North Carolina, and a presence in California, Minnesota and elsewhere.
- Syngenta shares are +12.4% in Zurich.
Fri, Jul. 22, 8:42 AM
- Syngenta (NYSE:SYT) says talks with regulatory authorities to win approval for its takeover by ChemChina have been "constructive" and the goal remains to complete the deal by year-end.
- CEO Erik Fyrwald says talks are ongoing with the Committee on Foreign Investment in the U.S., which is seen as the sticking point in the regulatory passage of the deal since the transaction has implications for U.S. food security.
- The comments come as SYT's H1 sales fell 7% Y/Y to $7.1B and EBITDA fell 12% Y/Y to $1.77B, worse than the ~5% decline forecast by analysts, as its profit margin fell to 24.9% from 26.2%.
Fri, Jul. 22, 5:45 AM
Tue, Jul. 12, 9:59 AM
- China National Chemical says it is extending its $43B takeover agreement for Syngenta (SYT +0.2%) until at least September 13.
- Bloomberg reports that ChemChina plans to sell $10B of preferred shares and raise another $15B in cash to help fund the acquisition, bringing the total equity contribution to $25B, and borrow the remainder through a loan package.
- The offer for SYT, announced in February, had been extended in May and was due to expire on July 18.