ChemChina Met With Syngenta To Discuss Bid, New Report Says
It appears as if China National Chemical Corporation (ChemChina) continues to move ahead with a takeover plan for Syngenta AG (NYSE: SYT), following Chairman Ren Jianxin's meeting with the company in Europe last week, Bloomberg reports.
According to Bloomberg, ChemChina is in the process of discussing a revised proposal to acquire Syngenta. The company's initial cash offer of $42 billion was rejected on November 12.
A source familiar with the matter told Benzinga on December 9 that ChemChina was expected to bid $44 billion for Syngenta in a deal involving the bank HSBC. Sygenta and an HSBC analyst declined to comment.
There's no guarantee a deal will be reached between ChemChina and Syngenta. With chatter circulating Wall Street, shares of the latter are up 3 percent since December 8.
A sell-side analyst told Benzinga last week that a deal between ChemChina and Syngenta "makes sense to some extent," adding that the acquirer has a "strategic desire to capture new chemical production."
If history is to be believed, investors in this space might want to consider how a wave of consolidation would affect their portfolios.
Syngenta last traded near $75.30 on Tuesday afternoon, up nearly 1 percent on the day.
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