EU probes 40-bn-euro ChemChina acquisition of Syngenta: statement

The European Commission on Friday opened an in-depth investigation into ChemChina's 40-billion-euro takeover of Swiss seeds giant Syngenta to see if it would hurt competition.

"We need to carefully assess whether the proposed merger would lead to higher prices or a reduced choice for farmers," EU Competition Commissioner Magrethe Vestager said in a statement.

The deal -- one of a series of massive Chinese acquisitions -- would combine Syngenta, a global leader in seeds and crop protection with ChemChina which controls Adama, the largest supplier of generic crop protection products in Europe.

"The transaction would take place in an industry that is already relatively concentrated," the Commission noted.

Syngenta said earlier this week it was confident the deal would go through, having already been cleared in the United States and Japan.

EU approval was expected early next year, it said.

The Commission said initial investigations showed the combined entity would have "relatively high combined market shares" in several categories, while ChemChina's Adama would be removed as a competitor with Syngenta.

Given the global scope of Syngenta and ChemChina, the Commission said it will cooperate closely with other competition authorities, notably in the United States, Brazil and Canada.

Syngenta's deal with ChemChina -- also known as China National Chemical Corp -- has drawn intense scrutiny as Chinese have gone on a global shopping spree from Hollywood to European football clubs.