China National Chemical Corp. is seeking to borrow a total of $35 billion to help fund the purchase of Syngenta AG, in a potential record financing for a Chinese acquisition.
ChemChina agreed to buy Syngenta for $43 billion earlier this month in deal that will transform it into the world’s largest supplier of pesticides and agrochemicals. The planned loan dwarfs Chinese companies’ previous overseas acquisition financing and may stoke concerns about the nation’s businesses piling up debt in a push to buy foreign technology.
The $15 billion facility being arranged by Citic Bank will likely be syndicated in Asia, according to the people. Terms are being finalized, they said.
A spokeswoman for ChemChina declined to comment. The Wall Street Journal reported details of the Citic Bank facility earlier, citing unidentified people.
(Source – http://www.agweb.com/article/chemchina-seeks-35-billion-in-loans-for-syngenta-takeover-deal-blmg/)