Syngenta, the largest agrochemical company in the world, just rejected a bid from ChemChina valued at $42 billion. ChemChina is a state owned entity that goes by the name of China National Chemical Corp.
According to the company, the deal was declined due to regulatory concerns.
Monsanto Co. also recently offered to purchase the company last month for $47 billion. The bid was rejected, and shareholders are now calling for the company to boost returns as a result of declining two massive takeover bids.
Despite rejecting the bid from China, the Swiss-based company is still in talks with the company even after rejecting the deal. It’s possible that a deal can still be reached if the price is increased. Syngenta is still in talks with several other companies that are interested in buying the brand.
Both companies declined to talk about the matter further with news outlets.
Syngenta’s stock skyrocketed on the news of a potential takeover, with shares up 10% on the day. It remains likely that the company will continue to consider accepting a takeover bid, however, the company will likely bide their time while reviewing potential takeover offers. Syngenta sells its products in over 120 countries, and had previously stated that the Monsanto bid had grossly undervalued the company. The smaller bid from ChemChina was rejected.
News of the deal came during a time where there’s been increased communication from Beijing about the importance of boosting China’s agricultural production. An acquisition of Syngenta would give China a commanding position on the world agricultural scene.