April 12, 2017 / 8:20 AM / a year ago

Syngenta says Mexican remedies for ChemChina deal will not have major impact

ZURICH, April 12 (Reuters) - Swiss pesticides and seeds group Syngenta AG said Mexican regulatory conditions for approving ChemChina’s planned $43 billion takeover bid will not have a major impact on the business.

Mexico’s antitrust commission COFECE approved the deal on Tuesday on condition that Syngenta divests five products, without naming them, in order to avoid risks to competition.

If the deal were carried out as originally planned by the firms, free competition would be placed at risk in certain herbicide and fungicide markets, COFECE said.

A Syngenta spokesman said the regulator’s remarks were in line with the company’s announcement on Monday that COFECE had approved the proposed acquisition by ChemChina.

“This approval included remedies, which are not material to our business,” he said in an email.

The deal is one of several reshaping the agricultural chemicals and seeds market, even as these deals trigger fears among some farmers that bigger, more powerful suppliers could be better placed to push up prices and economise on developing new herbicides and pesticides.

Syngenta expects the deal to close in the second quarter of 2017.

U.S. antitrust authorities have nodded the deal through on Tuesday on condition ChemChina divests three products, while the European Commission said planned asset sales would address its competition concerns. (Reporting by Oliver Hirt and Michael Shields, editing by Louise Heavens)

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