Syngenta AG is still aiming to complete a takeover by China National Chemical Corp. by the end of the year, brushing off opposition by some U.S. lawmakers and the possibility that the deal will be blocked by regulators.
“We are still on track,” Chief Executive Officer John Ramsay said on a call with analysts Wednesday when the agrochemicals company reported a fifth straight quarterly decline in sales. Syngenta is “very much anticipating the completion of the transaction, and, therefore, all the regulatory approvals by the end of the year.”
State-owned ChemChina, as the company is known, offered more than $43 billion in cash for the Swiss pesticides maker in February, trumping rival offers made by St. Louis-based Monsanto Co.. The transaction values Syngenta at about 452 francs a share, while the stock has languished at an average of about 400 francs since the deal was announced, pointing to a perceived risk that the purchase could be delayed by regulators including the Committee on Foreign Investment in the U.S., or CFIUS.
The process for getting approval from regulators is moving according to its original timetable, Ramsay said in an interview. He declined to specify whether an application has been filed to CFIUS. The companies gave the year-end target when their agreement was announced.