China's state-owned ChemChina is nearing a deal to buy Swiss seeds and pesticides group Syngenta for around 43 billion Swiss francs ($42.2 billion), two people familiar with the matter said on Tuesday.
The deal, for roughly 470 Swiss francs per share, would be the biggest cross-border deal involving a Chinese buyer and mark an acceleration of a shakeup in the global agrichemicals industry. Negotiations are in final stages but nothing has been signed, the two sources said.
It will likely be announced on Wednesday, when Syngenta is scheduled to release 2015 results, the people said. One source said minor adjustments to the price were still being discussed.
Syngenta shares closed 3.7 percent higher at 392.30 francs in European trade on Tuesday. ChemChina's offer would be at a premium of about 24 percent to Syngenta's Monday close of 378.40 francs.
Syngenta will not have to pay a considerable breakup fee if the buyout fails, the two sources said. While this potentially leaves the door open for peers including U.S. seed company Monsanto or BASF to top ChemChina's offer, the people said that Syngenta was not actively soliciting counter bids.