According to a report by the New York Post, the recent outbreak of the Zika virus could complicate the $43 billion merger between ChemChina and Syngenta AG (ADR) SYT.
The New York Post noted that Syngenta "could be in a position" to create a product to deal with the Zikua virus. The report added that the U.S. Committee on Foreign Investment (CFIUS) may take a closer look at the proposed acquisition given Syngenta's "key role" in the U.S. food industry through its U.S.-based research and production facilities.
"CFIUS focuses solely on whether an acquisition represents a national security risk," a Beltway CFIUS expert not involved in the merger told The Post. "I certainly think Zika will be a factor."
Shares of Syngenta were trading lower by more than 1 percent after nearly 90 minutes of trading on Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.