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Chinese state-owned chemical giant, ChemChina, announced Thursday it has finalized its 43 billion US dollars acquisition of Swiss agribusiness giant Syngenta.
ChemChina, officially known as the China National Chemical Corp., has purchased 94.7 percent of Syngenta's shares so far and will push forward the delisting of Syngenta from both Switzerland and the United States, the Beijing-based company told the press on Thursday.
The photo taken on February 3, 2016 shows the logo of Syngenta on its plant in Muenchwilen, Switzerland.
Syngenta is the largest European producer of hybrid seeds and crop protection products. Supported by 28,000 employees and more than 13,000 patents, it operates 107 production facilities and 119 research and development units in more than 90 countries and regions.
The deal has been reviewed and approved by commerce authorities and antitrust agencies of 20 countries and regions, including the United States, the European Commission, and Brazil.
"The deal will help ChemChina become one of the world's largest of the suppliers of pesticides and other crop-care chemicals," said Li Guoxiang, a researcher at the rural development institute of the Beijing-based Chinese Academy of Social Sciences, told China Daily.
Ren Jianxin, chairman of ChemChina (L) and Michel Demare, chairman of Syngenta AG, shake hands after a news conference to announce the ChemChina deal, delivered during the company's full year results presentation in Basel, Switzerland, on February 3, 2016.
Following the acquisition, ChemChina will respect Syngenta's corporate culture, maintain continuity of corporate management and allow the management team of Syngenta to play its role to realize a smooth transition and orderly integration.
In the future, ChemChina will implement a strategy to make Syngenta go public again with a view to realize long-term development and create greater value, the company said.
Syngenta Group Co. NK Soybeans are harvested with a Case IH combine harvester near Princeton, Illinois, US, on September 29, 2016.
The Chinese central government has pinned high hopes on reforms to solve structural issues in the agricultural sector, where some agricultural products are oversupplied while others rely heavily on imports.
China has been encouraging its companies to use both domestic and global resources to ensure the country's grain and food security in its agricultural policy.
Beijing-headquartered ChemChina possesses production, research and development, and marketing systems in 150 countries and regions.
Materials sciences, life sciences, high-end manufacturing and basic chemicals are its main businesses.
It has also acquired nine companies in France, the United Kingdom, Israel, Italy and Germany.