ChemChina, Syngenta submit minor concessions to EU watchdog: sources
By Chen Aizhu and Michelle Price
BEIJING/HONG KONG (Reuters) - China National Chemical Corp (ChemChina) [CNNCC.UL] and Swiss pesticides and seeds group Syngenta AG (SYNN.S: Quote) have proposed minor concessions to the EU's competition watchdog to address concerns over their $43 billion merger plan, sources told Reuters.
One person close to the deal said it was unlikely ChemChina would have to sell its Adama Agricultural Solutions Ltd (ADAM.N: Quote) unit. Discussions were focusing on remedying concerns with respect to specific products, some of which Adama may own.
This person said the overall divestments would be less than $500 million.
"It's about individual products where competition is scarce," this person said, adding that some of these products were only worth tens of millions of dollars.
"My understanding is that [divestments] are very minor," another source close to the deal said.
The European Commission's website showed "commitments" submitted on Jan. 9, which typically means the parties have proposed remedies such as asset divestment or specific product pricing. It did not elaborate on the nature of the commitments.
"Syngenta confirms that remedies related to the deal with ChemChina have been submitted to the EC. We will not comment further on that," a Syngenta spokesman said. "ChemChina and Syngenta remain fully committed to the transaction and are confident of its closure."
A spokesman for state-owned ChemChina told Reuters details of the remedy proposals were confidential. Continued...