22% Annual Return From Syngenta
Chris DeMuth Jr. • 65 Comments
Chris DeMuth Jr. • 65 Comments
Thu, Dec. 1, 3:12 AM
- ChemChina is setting up a fund that will aim to raise $5B for its purchase of Syngenta (NYSE:SYT) and is targeting about $25B in overall equity commitments, Reuters reports.
- The financing structure entails investors committing to the fund, which would in turn own equity in Syngenta - a move that would help ChemChina lower the debt burden of its planned $43B acquisition.
Thu, Nov. 17, 7:48 AM
- The European Commission says it is extending its deadline for a decision on ChemChina's proposed acquisition of Syngenta (NYSE:SYT) by 10 working days to March 29, 2017.
- The EC, which handles competition cases for the European Union, says it had pushed back the deadline at the request of the companies.
- Separately, Sen. Grassley reiterates concerns that the Chinese state-owned company could use U.S. sovereign immunity laws to shield itself from claims in U.S. courts; SYT's acquisition by ChemChina won U.S. regulatory clearance in August.
Wed, Nov. 16, 11:17 AM
- Syngenta (SYT -1.5%) moves lower after a U.S. congressional commission recommends that CFIUS, the body that vets acquisitions from foreign firms, be required to block purchases from Chinese state-owned companies.
- In its annual report to the U.S. Congress, the U.S.-China Economic and Security Review Commission says the Chinese Communist Party has used state-owned enterprises as the primary economic tool to advance and achieve its national security objectives.
- The U.S.-China commission did not make any reference to CFIUS - the U.S Treasury-led Committee on Foreign Investment in the United States - in its 2015 report.
- ChemChina is seeking to finalize a $43B takeover of SYT, which would be China's largest-ever foreign investment.
Tue, Nov. 1, 5:14 AM
- ChemChina has extended its $43B cash offer for Syngenta (NYSE:SYT) to Jan. 5 while it works to gain regulatory approval for the transaction.
- On Friday, EU anti-trust regulators opened an in-depth investigation into China's biggest-ever foreign acquisition, setting a March 15 deadline to complete its review.
Fri, Oct. 28, 2:21 PM
- European Union antitrust regulator says it has opened an in-depth investigation into plans by ChemChina to acquire Syngenta (SYT +0.8%), setting a March 15 deadline to complete its review.
- The European Commission says the merger could harm competition as the two companies, particularly through ChemChina’s Adama unit, have “strong overlapping portfolios” of crop protection products, such as herbicides and insecticides.
- "This deal would lead to the combination of a leading crop protection company with one of its main generic competitors. Therefore we need to carefully assess whether the proposed merger would lead to higher prices or a reduced choice for farmers," says EU Competition Commissioner Margrethe Vestager.
- The move was expected after SYT said earlier this week that regulatory approval of the acquisition likely would be delayed into 2017.
Tue, Oct. 25, 10:57 AM
- ChemChina is ready to offer more concessions to win European Union antitrust approval for its proposed takeover of Syngenta (SYT +1.2%), Reuters reports.
- ChemChina submitted a proposal to the European Commission in September, including a plan to divest ~$20M worth of assets from its agrichemical subsidiary Adama Agricultural Solutions, but the plan was deemed inadequate by the commission, according to the report.
- SYT slid more than 9% yesterday after the companies missed an EU deadline to address potential antitrust concerns, raising worries about the likelihood of a longer investigation from the EU's competition watchdog; SYT says regulators in EU and elsewhere have requested additional information, and it now expects the regulatory process to extend into Q1 2017.
Mon, Oct. 24, 7:41 AM
- Syngenta (NYSE:SYT) -7.1% premarket after the European Union says ChemChina failed to submit proposed remedies to resolve potential antitrust concerns related to their planned merger by last Friday's deadline.
- Companies involved in EU probes of complex deals sometimes decide not to offer commitments at an early stage if they know a deal is likely to get deeper scrutiny by regulators, but the move raises concerns about how quickly the deal would gain regulatory approval.
- EU regulators now have until Oct. 28 to decide whether to approve the deal without conditions or open an extended "phase two" investigation that could add at least another four months before regulators make a final decision.
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.
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.
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.
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, 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%.