Syngenta AG (SYT) American depository shares were lower over 1% in recent pre-market trade as Reuters cited unnamed people with knowledge of the matter as saying that China National Chemicals Corp, which is seeking to take over the Swiss crop protection and seeds company, is in talks to merge with Sinochem Group, another Chinese state-owned chemical company.
The report cited one person as saying the Chinese government has given the mandate to let Sinochem lead in the potential merger.
The European Union is currently evaluating whether to approve ChemChina’s takeover of Syngenta and is planning to make a decision by Oct. 28. The report cited competition commissioner Margrethe Vestager as not wanting to comment on any potential issue arising if ChemChina merges with SinoChem.
By Fred Canto