It expects ChemChina to complete its acquisition by the end of this year.
Syngenta has disclosed that it expects ChemChina to close its takeover deal by the end of 2016. Meanwhile it has reported an unexpected drop in lower profits during the first quarter.
Chinese state-owned ChemChina has been trying to acquire Swiss pesticide and seed bank, Syngenta.
“We are having constructive discussions with all regulatory authorities which reinforce our confidence in closing the transaction by the end of the year,” said Erik Fyrwald, Syngenta’s Chief Executive in its results statement.
Its first quarter results were dented due to weak agricultural markets and a continued slump in its Latin American business.
Its net income declined below the average expectation of analysts by 13% to $1.06 billion whereas analysts had predicted it to hover around $1.28 billion.
Its sales have fallen by 7% to $7.09 billion, short of analyst’s expectation of $7.22 billion.
“After a resilient first quarter, market conditions were more difficult in the second quarter, notably for the high- margin Europe, Africa and the Middle East business,” said Fyrwald.
Fyrwald had expected the agricultural business in the Asia Pacific region to return on its growth path, as droughts in the region had eased. While in Brazil, although grower’s underlying profitability remained robust, economic uncertainty and credit constraints have continued to torment the economy.
“Group sales for the year are expected to be slightly below last year at constant exchange rates; reported sales are likely to show a mid-single digit decline due to the continuing strength of the dollar,” said Fyrwald.
He went on to add that lower costs of raw materials, efficiency measures and currency hedging should allow it to keep its yearly EBITDA margin at nearly last year’s levels. He expects free cash flow to cross the $1 billion mark this financial year.
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