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How Does The Zika Virus Affect U.S. Regulatory Approval Of ChemChina-Syngenta Deal?

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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) (NYSE: 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.

 

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