A U.S. regulator has cleared ChemChina's $43 billion takeover of Swiss pesticides and seeds group Syngenta, the companies said on Monday, boosting chances that the largest foreign acquisition ever by a Chinese company will go through.
The decision should remove significant uncertainty over whether the acquisition of the world's largest pesticides maker will be completed.
Syngenta shares ended trading on Friday at 380.80 Swiss Francs ($396), some 100 Swiss francs less than what ChemChina's offer valued the company.
Reuters had reported earlier that the acquisition was in the final stages of being cleared by the Committee on Foreign Investment in the United States (CFIUS), which scrutinises deals for national security implications.
"China National Chemical Corporation (ChemChina) and Syngenta today announced that the companies have received clearance on their proposed transaction from the Committee on Foreign Investment in the United States (CFIUS)," a joint statement released by Syngenta said.
"In addition to CFIUS clearance, the closing of the transaction is subject to anti-trust review by numerous regulators around the world and other customary closing conditions. Both companies are working closely with the regulatory agencies involved and discussions remain constructive.
"The proposed transaction is expected to close by the end of the year."
Syngenta had said in July it expected the deal to close this year despite concerns that U.S. regulators could throw a spanner in the works.
Syngenta's share price has significantly lagged ChemChina's offer of $465 per share plus a 5 franc special dividend amid concerns that the deal would get through CFIUS. Syngenta derives about a quarter of its sales from North America.