KALAHEO — A potential $43 billion buy-out of Syngenta by China National Chemical Corporation (ChemChina) was approved by the Committee on Foreign Investment in the United States Monday.
The deal would result in the state-owned ChemChina acquiring Swiss-owned Syngenta, was made in February and was awaiting CFIUS approval before it could move forward.
According to a news release from Syngenta, the proposed transaction is expected to close by the end of the year.
Beth Tokioka, spokeswoman for Kauai Syngenta, said Syngenta is “pleased to have received clearance from CFIUS,” but wasn’t able to comment further on the topic.
She said she was unable to confirm whether the acquisition would have an effect on operations in Kauai’s Syngenta.
“We will not provide any additional information regarding the committee’s review, to respect the confidentiality of the process,” Tokioka said.
This isn’t the first time Syngenta has entertained the idea of selling, or merging the company. In August, Monsanto abandoned a $47 billion proposed takeover of the company.
The CFIUS reviews deals for potential national security problems and was just one roadblock for the deal, according to the news release.
“In addition to CFIUS clearance, the closing of the transaction is subject to anti-trust review by numerous regulators around the world and other customary closing conditions,” the release said. “Both companies are working closely with the regulatory agencies involved and discussions remain constructive.”
ChemChina is headquartered in Beijing, China and owns production, research and development, and marketing systems in 150 countries and regions.
According to the release from Syngenta, ChemChina is the largest chemical corporation in China and occupies the 234th position among the Fortune 500. Main business includes materials science, life science, high-end manufacturing and basic chemicals.