Mexican regulator pins conditions ChemChina, Syngenta deal

FILE PHOTO: The company logo of China National Chemical Corp, or ChemChina, is seen at its headquarters in Beijing, China February 3, 2017. REUTERS/Thomas Peter/File Photo

MEXICO CITY (Reuters) - Mexico's antitrust commission COFECE said on Tuesday it would condition its approval of ChemChina's [CNNCC.UL] planned $43 billion takeover bid of Swiss pesticides and seeds group Syngenta AG SYNN.S.

If the deal were carried out as originally planned by the firms, free competition would be placed at risk in certain herbicide and fungicide markets, COFECE said.

The regulator said its approval would be conditioned on Syngenta divesting five specific products, without naming them, in order to avoid risks to competition.

The COFECE remarks appear to be at odds with a statement by Syngenta on Monday, which indicated that COFECE approved the proposed acquisition of Syngenta by ChemChina. [nFWN1HH020]

“This represents a further step towards the closing of the transaction, which is expected to take place in the second quarter of 2017,” Syngenta said in the statement.

Reporting by Anthony Esposito; Editing by Matthew Lewis