Syngenta’s £35bn takeover in doubt as Chinese play hardball

A £35 billion bid for pesticides and seeds group Syngenta was in doubt on Monday after the Chinese buyers declined to allay competition concerns.

The European Commission gave ChemChina, the Chinese state-owned chemical company, until October 21 to offer concessions that would see the deal through.

The EC said there had been “no commitments” from the Chinese. That means the commission will now either clear the deal or open a full investigation, which could take five months.

Syngenta shares fell nearly 8% in Zurich trading.

It said “constructive discussions with the EU are ongoing” and the firm “will issue an update on the progress of the ChemChina transaction with its third-quarter trading statement tomorrow”.

The EU is concerned the agrichemicals industry is shrinking in ways that could hurt competition. Watchdogs are already probing the tie-up between Dow Chemical and DuPont.

Meanwhile, EU lawmakers and environmental campaigners have been calling on Competition Commissioner Margrethe Vestager to block Bayer’s bid for Monsanto.