A potential merger with Chinese state-owned Sinochem may help debt-ridden chemicals company ChemChina as it looks to complete its $43.5bn purchase of Swiss-based seeds firm Syngenta. ChemChina had aggressively bought up assets home and away, including a $7.7bn purchase of Italian tyre maker Pirelli, along with Syngenta, but these bold buys have left it highly leveraged. The deal would also give the Swiss chemical group access to China’s fast-growing market for agricultural chemicals, which is expected to grow by more than 50% in the next decade. Both firms have so far denied the merger plans.
A potential merger with Chinese state-owned Sinochem may help debt-ridden chemicals company ChemChina as it looks to complete its $43.5bn purchase of Swiss-based seeds firm Syngenta. ChemChina had aggressively bought up assets home and away, including a $7.7bn purchase of Italian tyre maker Pirelli, along with Syngenta, but these bold buys have left it highly leveraged. The merger would create a chemicals, fertiliser and oil conglomerate with around $100bn in annual revenue. Both firms have so far denied the merger plans.