MOSCOW (MRC) -- China National Chemical Corp. (ChemChina; Beijing) says it has started the process of substituting equity for part of the loan financing of the offer made by CNAC Saturn, a subsidiary of ChemChina, for shares and American Depositary Shares of Syngenta, said Chemweek.
A first equity commitment of USD5 billion has been made by Feng Xin Jian Da, a fund managed by CITIC Trust, a subsidiary of CITIC Ltd., which is listed on the Hong Kong stock exchange. CITIC and HSBC are the banks handling ChemChina’s acquisition of Syngenta.
The Chinese company reportedly has secured a five-Billion-dollar investment from Citic Limited, one of China’s largest state-owned companies, to help fund the Syngenta acquisition. ChemChina said in a statement that would mean it would need fewer loans to finance the USD43-Billion purchase of the Swiss seed and ag chemical company.
The proposed acquisition faces a detailed review in the U.S. and warnings from ag-state lawmakers who say the impact of such a deal must be fully considered.
The companies still anticipate completing the deal by the end of 2016, ChemChina said.
As MRC informed earlier, Monsanto previously sought to buy Swiss pesticide maker Syngenta AG, abandoning the USD43.7 billion bid in August after the other company refused to agree to a deal.
MRC