Bloomberg

(Bloomberg) -- Syngenta AG fell in Swiss trading on concern that its $43 billion takeover by China National Chemical Corp. could be disrupted by China’s plan to merge its acquirer with another state-owned entity.

China is planning to merge ChemChina with Sinochem Group as the government continues its overhaul of state-owned enterprises, according to a person familiar with the matter. Combining the two companies would bring together assets of more than $100 billion.

Shares of Syngenta, the world’s largest maker of agrochemicals, dropped 1.7 percent to 413.50 francs at 9:14 a.m. in Zurich.

The Chinese plan casts fresh doubt on the takeover deal just as ChemChina and Syngenta were entering the final stages for completion by year-end. The spread between the Swiss company’s share price and the $465 ChemChina offer price had narrowed, an indication that investors had become more optimistic of its success.

To contact the reporter on this story: Andrew Noël in London at anoel@bloomberg.net. To contact the editors responsible for this story: Tara Patel at tpatel2@bloomberg.net, Phil Serafino

©2016 Bloomberg L.P.

bloomberg

 Bloomberg