Bloomberg reports that the China National Chemical Corporation has commitments from lenders on a $12.7 billion loan package to help secure its purchase of Syngenta. ChemChina acquired the financing from 17 different banks. The agreement to buy Syngenta for $43 billion came earlier this year in a deal that would make it the largest supplier of pesticides and ag chemicals in the world. The funds coming together now puts the state-owned corporation one step closer to finishing up the country’s biggest acquisition ever outside of its borders. U.S. national security officials approved the takeover deal last month, but it is still subject to an anti-trust review by regulators worldwide.
ChemChina is planning to sell $10 billion in preferred shares to help fund the acquisition. They also intend to raise another $15 billion in cash, bringing the total equity contribution to $25 billion. ChemChina will borrow the rest of the financing it needs via a loan package.
Source: NAFB News Service