ChemChina and Sinochem (Sih’-noh-kem) are planning a merger next year. Several senior bankers in Asia say the merger would create the biggest chemicals group in the world with $100 billion in revenues. The merger would come after ChemChina’s $43 billion mergers with Syngenta. A Financial Times Dot Com article says China has 1.4 billion people to feed, so the country is looking for more control of technology in seeds, herbicides, and pesticides. The Chinese government is pushing for more control of technology despite widespread domestic opposition to genetically modified crops. Bankers across Asia told the Financial Times that the move is politically driven and intended to make sure that ChemChina has the financial strength to absorb Syngenta. The heavily indebted chemicals conglomerate will have achieved China’s largest overseas purchase when the Syngenta deal is complete. While bridge financing has been in place for the Syngenta deal for over a year, ChemChina has revealed very little about its financing plans other than a mix of loans, equity, and support.
From the National Association of Farm Broadcasting news service.