(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.
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