Gone to seed

14 November 2016 By Rachel Morarjee, Richard Beales Follow @richardbeales1

The Swiss agribusiness group’s share price has tumbled, implying a plunge in confidence the $43 bln purchase will happen. The rot seems to be in the PRC, where corporate and political jockeying could prevent needed approval. China Inc will pay a high price if the deal fails.

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Syngenta shares closed down 0.9 percent on Nov. 11 at 378.10 Swiss francs (about $383) each. Chinese state-owned chemicals group ChemChina in February offered to buy Switzerland-based Syngenta for about $43 billion, or $465 a share plus a small special dividend.

Syngenta's stock has fallen more than 10 percent since Oct. 14, when Reuters reported a possible merger between PRC giant Sinochem and ChemChina, citing three sources familiar with the matter. Both companies have denied that they are in merger talks.

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