Syngenta rejects $42 billion ChemChina offer: Bloomberg
(Reuters) - The world's largest agrichemicals company, Syngenta AG SYNN.VX, has rejected a $42 billion takeover offer by state-owned China National Chemical Corp, Bloomberg reported on Thursday, lifting Syngenta's shares.
Syngenta is under pressure to boost shareholder returns after turning down a $47 billion takeover offer from Monsanto Co (MON.N: Quote) this year. Its chief executive stepped down two months later.
Citing unidentified sources, Bloomberg said the Swiss-based company was still in talks with ChemChina as well as other suitors, and that a deal could be reached within weeks.(bloom.bg/1HL1GRF)
Syngenta's Swiss-listed shares opened more than 11 percent higher and were trading up 7.2 percent at 370.90 Swiss francs by 0521 ET on Friday on news of the takeover approach.
Bloomberg said Syngenta turned down the offer on regulatory concerns, without elaborating.
Asked about the report, a ChemChina spokeswoman said the company had nothing to announce. Syngenta declined to comment.
ChemChina has a 5 percent share of the global crop chemicals through its ownership of Israeli generic pesticides maker Adama. Syngenta's 19 percent market share would catapult it to the industry leader position.
Acquiring Syngenta would help ChemChina further its international expansion ambitions and help to enhance the technological know-how of China, industry experts said.
The company has a history of acquiring interests in Western specialty chemicals businesses. Continued...