State-owned China National Chemical Corp. Wednesday offered $43 billion in an agreed takeover for Swiss pesticide and seed giant Syngenta, in what would be by far the biggest-ever overseas acquisition by a Chinese firm.

The deal is the latest in a string of overseas investments for China's biggest chemical company, also known as ChemChina, as Beijing prods its companies to "go out" to expand.

Syngenta's board recommended the offer of $465 a share, plus a special dividend, to its shareholders, saying in a statement that "the proposed transaction respects the interests of all stakeholders".

The statement said the deal "will enable further expansion of Syngenta's presence in emerging markets and notably in China".

Swiss President Johann Schneider-Ammann hailed the announcement, telling reporters "it's a good deal".

Despite the support, the deal could face challenges before going through.

Syngenta reportedly rejected a higher $47 billion bid from rival Monsanto in August last year, and in November Bloomberg News said the US firm was mulling a higher offer.

The transaction is also likely to face regulatory hurdles -- much of Syngenta's business is in the United States, where a $18.5 billion offer by Chinese state-owned energy company CNOOC for US oil firm Unocal failed in 2005 in the face of political pressure.

Ahead of the announcement an analyst at Germany's Baader Bank said that an all-cash deal would be welcomed by investors but "it could pose political problems".

The offer far outstrips China's biggest overseas acquisition to date, CNOOC's purchase of Canadian oil firm Nexen for $15.1 billion in 2013.

The Chinese government has encouraged its companies to invest abroad to secure raw materials and markets, while growth is slowing at home.

"They're (government officials) still thinking in terms of it's good for companies to gain access to these technologies and these distribution channels," Arthur Kroeber, managing director at research firm Gavekal Dragonomics, told Bloomberg News.

- Global multinationals -

The deal is the latest in a string of acquisitions by ChemChina, which last month bought a 12 percent stake in Swiss energy and commodities trader Mercuria to expand its portfolio.

Also in January, the Chinese company said it planned to buy Germany's KraussMaffei Group, which makes machinery for producing plastics and rubber, for 925 million euros ($1.01 billion).

Last year it announced the takeover of Italian tyre maker Pirelli, renowned for its Formula One equipment and racy calendars, in a deal valued at 7.4 billion euros.

"Their acquisition strategy is not 'catching up' anymore," said Tyler Rooker, an assistant professor at the University of Nottingham. "They're acquiring assets that add to their competitiveness as global multinationals."

Syngenta said its existing management will continue to run the company, which will remain headquartered in Switzerland, "reflecting this country's attractiveness as a corporate location".

"Syngenta remains Syngenta," chairman of the Swiss company Michel Demare told reporters.

He said he was not worried the deal would stall.

While joining forces with Monsanto would necessarily have forced the Swiss company to shed a range of activities to placate competition authorities, Demare said that with Chemical Corp "I believe there are no major obstacles".

"This is not a transaction based on costs synergies. It is one that is focus on growth innovation and common long term vision," he insisted.

ChemChina chairman Ren Jianxin agreed.

"Our vision is not confined to our mutual interests, but will also respond to and maximise the interests of farmers and consumers around the world," he said.

After the deal, Ren will take over as chairman of a new 10-member Syngenta board, four of whom will be existing directors, the statement said.

China is trying to make its farming sector more efficient, supporting massive agricultural conglomerates to replace what were once small family-owned plots.

The country is a major importer of wheat and soybeans, and Beijing hopes to ensure food security for its nearly 1.4 billion people.

The government supports what it calls "hybrid" crops, such as rice but has moved cautiously on genetically modified food, saying it will prevent "unauthorised" varieties.

ChemChina has a unit specialising in agricultural chemicals, including fertilisers and pesticides, according to its website, but is not present in the seeds business.

Syngenta chairman Michel Demare said the deal was "focused on growth globally, specifically in China and other emerging markets, and enables long-term investment in innovation".

ChemChina: Chinese state-owned chemical giant
Beijing (AFP) Feb 3, 2016 - State-owned China National Chemical Corp., also known as ChemChina, on Wednesday announced a $43 billion offer to take over Swiss pesticide giant Syngenta, in what would be by far the biggest overseas acquisition by a Chinese firm.

What is ChemChina?

ChemChina is the country's biggest chemical firm and is among more than a hundred state-owned enterprises which report directly to the central government. Fortune magazine ranked it as number 265 on its list of "Global 500" companies for 2015.

What is its business?

Created out of assets under the former ministry of chemical industry in 2004, the company has grown to include speciality chemicals, oil refining, agricultural chemicals, tyre and rubber products and chemical processing equipment.

According to the most recent figures on its website, it had assets of 272.5 billion yuan ($41 billion) and annual revenue of 244 billion yuan ($37 billion) in 2013.

Chairman Ren Jianxin is credited with building the company through an aggressive string of foreign investments.

What are its recent overseas deals?

In January, ChemChina bought a 12 percent stake in Swiss energy and commodities trader Mercuria to expand its portfolio in the sectors. The Chinese government has encouraged its companies to invest abroad to secure raw materials.

Also in January, the Chinese company said it planned to buy Germany's KraussMaffei Group, which makes machinery for producing plastics and rubber, for 925 million euros ($1.01 billion).

And in 2015, it announced the take over of Italian tyre maker Pirelli, renowned for its Formula One equipment and racy calendars, in a deal valued at 7.4 billion euros.

Who is Ren Jianxin?

Ren, 58, has been chairman of ChemChina since 2014, but he has been with the company in various executive positions since its formation. A native of the northwestern province of Gansu, he has an advanced degree in economics.

In the 1980s, shortly after China launched economic reforms, he and seven others started a cleaning company called BlueStar, which washed boilers and tea urns. BlueStar grew through mergers and acquisitions, before joining with companies under the chemical ministry.

A glowing portrait in the state-run China Daily newspaper described him as "the undisputed king of mergers and acquisitions" in the chemical industry.