WITH roughly a fifth of the world’s population but less than a tenth of its arable land, China has had to look outside its borders to feed itself. In the past, clumsy and sometimes corrupt state enterprises foraged in Africa and Latin America for farmland and commodities. Now, savvier Chinese firms are looking abroad for advanced technologies that can boost yields and efficiency at home.
This week, China National Chemical Corp pulled off a coup that advances China’s national goal of “food security”. ChemChina, as the state group is known, has already made a string of acquisitions in Europe, including Pirelli, an Italian tyremaker. On February 3rd it persuaded the board of Switzerland’s Syngenta, a big maker of pesticides and seeds, to accept its takeover bid. When completed, the $43 billion deal will be the biggest Chinese foreign takeover ever.
In accepting its Chinese suitor, Syngenta spurned a rival offer from Monsanto, an agribusiness giant. Syngenta was reluctant to fall into the arms of the American firm, whose aggressive attempts to promote genetically modified foods have caused a backlash in Europe. The combination of...Continue reading
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