(Bloomberg) -- China National Chemical Corp. and Sinochem Group Co. are exploring ways of combining the two companies in a deal which will be able to avoid national security concerns from the U.S., DJ reports citing people familiar with the matter.
China wants to avoid stepping on a pledge it made to the U.S. as part of the $43 billion takeover of seed company Syngenta AG, in 2016.
ChemChina may be placed under a new holding company together with Sinochem and supervised by the state-owned Assets Supervision and Administration Commission (Sasac). Placing the two companies together under a holding company could avoid U.S. government scrutiny of Chinese ownership in the Swiss company, DJ says.
ChemChina and Sinochem didn’t respond to requests for comment from DJ.
