ChemChina gets EU approval for Syngenta purchase

China National Chemical Corp on Wednesday won European Union antitrust approval for its $43 billion takeover of Swiss pesticide maker Syngenta Corp, a day after the US gave its approval, bringing China's largest foreign acquisition closer to completion.

European and US regulators required divestitures as part of their approval process.

ChemChina's offer to divest some pesticides and other agricultural products will remove "problematic overlaps" and allow the EU to clear the deal, the European Commission said in an emailed statement.

The Federal Trade Commission in the US said that it was requiring the companies to divest three types of pesticides in the US as a condition for approval.

China's antitrust authorities are examining the proposed tie-up, and the companies expect the deal to close by the end of June according to Bloomberg.

In 2016 ChemChina unveiled plans to acquire Syngenta in a transaction that will transform the Chinese company into one of the world's biggest supplier of agrochemicals and pesticides.

When first announced, terms of the deal called for Syngenta to remain based in Switzerland and the retention of the company's existing management team. ChemChina will obtain Syngenta's advanced research and biotechnology for seeds and pesticides while Syngenta is expected to gain easier access to China's huge agricultural market.

The takeover is one of a series of mega-deals that would reshape the global agrochemical industry. Dow Chemical Co's bid to merge with DuPont Co cleared its biggest hurdle last week after getting EU approval. Bayer AG still needs approval for its purchase of Monsanto Co. The combined transactions would slim down six industry players to three giants: one American, one German and one Chinese.

Bloomberg