ChemChina offers to buy Syngenta for Chinese record of $43 bn

China National Chemical Corp on Wednesday offered to buy Syngenta for $43 billion, the Swiss pesticide giant said in a statement, in what would be the biggest-ever overseas acquisition by a Chinese firm.

Syngenta's board recommended the offer of $465 a share, plus a special dividend, to its shareholders, saying "the proposed transaction respects the interests of all stakeholders".

It said the deal "will enable further expansion of Syngenta?s presence in emerging markets and notably in China."

The deal outstrips China Unicom Hong Kong Ltd's purchase of China Netcom Group Corp for $28 billion in 2008, according to data from Bloomberg.

An analyst at Germany's Baader Bank said prior to the announcement that a deal would be welcomed by investors "because it is entirely in cash". However, "it could pose political problems," he said.

Last month, ChemChina said it would buy Germany's KraussMaffei Group, which makes machinery for producing plastics and rubber, for 925 million euros ($1.0 billion).

The state giant also in January announced it had bought a 12 percent stake in Swiss energy and commodities trader Mercuria in a bid to expand its portfolio.

Syngenta said its existing management will continue to run the company.

A 10-member board of directors will be chaired by Ren Jianxin, Chairman of ChemChina, and will include four of the existing Syngenta Board members, it said.

Michel Demare, Chairman of Syngenta, said: "In making this offer, ChemChina is recognising the quality and potential of Syngenta's business.

"This includes industry-leading R&D and manufacturing and the quality of our people worldwide. The transaction minimizes operational disruption; it is focused on growth globally, specifically in China and other emerging markets, and enables long-term investment in innovation.

"Syngenta will remain Syngenta and will continue to be headquartered in Switzerland, reflecting this country?s attractiveness as a corporate location.?