Chemistry – Welcome Offer – Süddeutsche.de

The Chinese company Chem-China has 39 billion euros for Syngenta. The Swiss rejoice.

From Christoph Giesen and Charlotte Theile , Zurich / Munich

It is a takeover bid, could write the story: the state-owned China National chemical Corporation (Chem China), the largest chemical company in the people’s Republic will take over the Swiss agrochemical company Syngenta. Offered purchase price 43 billion dollars (about 39 billion euros). Should the deal come about, it would be by far the largest acquisition that has ever made abroad a Chinese company. And also for Chem-China is offering a challenge. EUR 39 billion, of this magnitude is the own annual sales. The Board of the Basler Group agrees in any case. He unanimously recommending that shareholders accept the offer.

In Europe Chem-China is no longer unknown. Only in mid-January, the company announced to take over the German engineering group Krauss-Maffei. However, compared to the offer, which is now on the table, this transaction is almost cute. Not even one billion Euro cost Krauss-Maffei. Even the most expensive Chinese acquisition in Europe was still significantly digit: EUR 7.1 billion were paid last year for the Italian Pirelli. The buyer? . Was called also Chem-China

China’s enterprises are to international heavyweights are

For the shareholders of Syngenta’s offer from Beijing sounds tempting: The offered price of 480 Swiss francs per share is significantly about what the papers are worth on the stock market now. Chairman Michel Demare said the offer from China was a recognition of the quality and potential of Syngenta. But not only the shareholders have to agree: The regulators in Europe and the United States must agree to the business yet. The companies expect some effort.

However, the company should here be successful, would Chem-China at a stroke the world’s largest producer of pesticides. In addition, the Chinese would play a crucial role in the production of seeds and thus increase their influence on the international food production significantly. But problems and one or the other discussion could with the Chinese shopping. Ever since Syngenta in 2000 emerged from the agricultural division of Novartis and Astra Zeneca, the company has been repeatedly criticized for its involvement in genetic engineering. Also the distribution of weed control agent paraquat caused protests. It is to be used in plantations in developing countries, often without the required protective clothing. A significant risk to the workers.

Just last year Syngenta received a serious bid. At the time of the controversial American seed producer Monsanto was interested. But Syngenta fended off the offer. That now a competitor get to the train, is likely to be bitter for Americans. The offer of Chem-China is well above what Monsanto had commanded in the summer.

But not the only reason why the deal is considered a clever move by the Basler. On Wednesday announced the management, it was neither a restructuring of the leadership even job cuts planned. Even the Swiss Economy Minister Johann Schneider-Ammann praised the deal. It would involve a wise investment in the future, braced by two “rock solid” companies.

If you look at Chinese takeovers of recent years in Europe, it is notable that investors all have long-term goals. With few exceptions, they let the local management in office. One or two managers from China are sent, but they carry on a long leash. . Instead, the new owner to focus on creating an improved market access in China

15 years have passed since that China’s former party chief Jiang Zemin’s group links two words shouted “Raves from” China’s state-owned enterprises should be to international heavyweights. You should accept Western companies and to prove itself on the world market. However, having a clear plan. Every few years, published China’s central government a country by country table with endorsement advice. Germany, for example, is related to the engineering, environmental technology and the automotive supply industry on the list. Who wants to turn the big wheel and go without shopping Shopping List, has little chance. Emergency deny the authorities in China their consent.

While in the United States, quickly came to prestigious deal about the takeover of the IBM computer business, for the Chinese, the beginnings in Europe were rather timid. One or the other medium-sized and the ailing automaker Volvo, which was the balance. Then followed Pirelli. And now? Stands for the first time a really big acquisition in Europe.