The China National Chemical Corporation, or ChemChina, is seeking $35 billion in loans to fund its acquisition of Syngenta. Bloomberg reports the company has already hired a bank to arrange for a $15 billion loan and will meet this week with lenders about a separate $20 billion loan. ChemChina agreed to buy Syngenta this year for $43 billion.
The deal will transform ChemChina into the world’s largest supplier of pesticides and agrochemicals. The deal also brings the potential of introducing Syngenta’s genetically engineered products to China. However, as Bloomberg points out, the planned loans add more debt to the nation’s businesses and may stoke concerns about the businesses piling up debt in a push to buy foreign technology.