Quick Take: ChemChina, Syngenta Merger Gets U.S. Antitrust Clearance

The U.S. anti-monopoly regulator has conditionally approved ChemChina’s proposed $43 billion purchase of Swiss agribusiness giant Syngenta, removing one more major obstacle in the path of a deal that would be China’s biggest-ever overseas acquisition.

The Federal Trade Commission said China National Chemical Corp. and Syngenta AG had agreed to asset divestitures related to types of pesticides in order to receive antitrust approval in the U.S., according to a statement posted on the FTC website on Tuesday. The divestiture condition is aimed at preventing a combined company from gaining too much share for the herbicide paraquat, the insecticide abamectin, and the fungicide chlorothalonil.

To receive the approval, ChemChina has agreed to sell all of its U.S. assets engaged in the manufacture and sale of the three products to California-based Amvac Chemical Corp.

The FTC’s approval comes more than a half year after the U.S. agency that reviews such purchases for national security concerns also signed off on the deal, which was first announced more than a year ago. The deal’s huge size and large number of markets where both companies operate has created an extra level of complexity, forcing them to extend their deadline for completion at least three times.

The deal is still awaiting approval from European antitrust regulators, who have said they expect to make a decision later this month.

Contact reporter Yang Ge (geyang@caixin.com)