Fusion, the largest agro – chemical group Syngenta is now a Chinese herder group is more focused on China. These are the five most important points.Isabel Strassheim5 Kommentare5Auf the roof of the hotel Trois Rois in Basel: in The former Syngenta President Michel Demaré, and Chemchina President Jianxin Ren in June 2017 following the announcement of the Acquisition.Photo: Lucian Hunziker
After the Takeover by China of the operative comes together conclusion: The Basel agro-chemical group Syngenta is fused with the agricultural business of Chemchina and Sinochem, as well as with Israel’s spray companies in Adama, which also belongs to Sinochem. Thus, the Syngenta Group is the largest agro-chemical company in the world with a turnover of more than 23 billion dollars is created.
The influence of China
The Acquisition of Syngenta by Chemchina for 43 billion dollars in 2017, the most expensive by Chinese abroad at all. They fired up the debate over the sale of Western companies by China. In Switzerland, there should be a new law with the objective that the state checks in the future, foreign Acquisitions, such as the national Council this March, has decided.
China tried to calm the Fears. “Syngenta remains Syngenta,” said Chemchina chief Ren Jianxin. In the meantime, much has changed, however: The group will now be re-sculpted. Syngenta is strained in recent years, with the Chinese agricultural business, as well as with the pesticides specialized Adama. The sales of marketed where possible, the products of the other. Also, the procurement was more and more in common, in order to generate the new Size, price advantages.
The cooperation, the group will now be even more intense, such as Syngenta CEO Erik Fyrwald in the media communication on the establishment of the Syngenta Group quote. China will play only as a sales market, a crucial role. It is not going to distribute the pesticides and artificial fertilizer from Chemchina, and Sinochem on the group worldwide, explains Syngenta spokesman Christoph Sieder. Belongs to Sinochem about a pesticide manufacturer that produces as Syngenta’s crop protection products with the controversial toxin Paraquat.
The new Syngenta doubled the number of its employees, and to new 48’000 in the world. You sit in over 100 countries. In Switzerland, it stays at 2800 employees. The headquarters of the group is still in Basel, such as the Chemchina 2017 if the Acquisition had guaranteed. “A of job losses is not associated with the merger, to the group,” said Syngenta spokesman Christoph Sieder. It’s not going to be a merger, when it will come to a reduction of the number of employees. But the Expansion of the business field.
Also the headquarters of the new group – and thus the personnel-intensive management headquarters – is expected over the course of five years, secured to remain in Basel. Syngenta CEO Erik Fyrwald said in an Interview in January: “Currently, there are no plans to leave Switzerland.” At the time, had been announced already.
the future of The new group
it brought the old Syngenta on sales of $ 13 billion, the Basel sold so much pesticides, such as no other group in the world. Together with the Chinese agro-chemical business as well as the Israeli manufacturer Adama, of the sold pesticides with expired patent protection (generic), it is now virtually a doubling in revenue.
The new group will also continue to grow organically in force: China is a market of growing importance. Thanks to the merger may decide to Syngenta, this huge agricultural country slightly more difficult, he had previously identified for the Basel only around 5 percent of sales. Through the Acquisition, the merger, China has opened the access to the “home market” in full. The growth should be in double-digit percentage range. The revenue is currently well below one billion dollars, this is likely to change rapidly. The most important Market for Syngenta Group remains, nevertheless, Brazil.
The result for consumers
For consumers, it changes nothing. Because pesticides and seed have a similar way to medicines national be approved. This means that the Syngenta Group will not be able to sell pesticides, or seeds of Chemchina, Sinochem, or Adama automatically in Europe or elsewhere. In the case of banned pesticides, however, can land due to the Import of food on the plate. Because the plant residues can remain, which disappear in the processing. For farmers, the further concentration in the agrochemical industry means a smaller selection, and thus a higher dependency and higher prices.
return to the stock exchange
“On the plans for our IPO, nothing has changed,” said Syngenta spokesman heater. In the case of the Takeover of Syngenta, in 2017, it was announced, to bring a part of the capital within five years – so, at the latest, in the summer of 2022 – back to the stock market. In the case of the Takeover by the Chinese, Syngenta, the Swiss stock exchange decoration had been discounted. The new listing should be made in China as well as in Europe or the USA. The market conditions give the exact date of a Syngenta spokesman. The debt of the company increased after the Takeover, clearly, the Chinese had to so refinance the billion purchase. Only last April, the company placed bonds in the amount of 600 million euros.
the government – -the Chinese mother of the conglomerate Chemchina and Sinochem want to merge. In the next few weeks, it could give the news, to hear from industry circles. Both together would come to a turnover of over 150 billion dollars. The chemical giant Chemchina had taken over in 2015, ahead of Syngenta – the Italian tire manufacturer Pirelli. Sinochem big in the petrochemical business and in Oil is investing in Colombia. A merger of the two would have to be examined by competition authorities around the world.
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