In a major push to ChemChina's global ambition, ChemChina's $43 billion acquisition of Syngenta AG is reported to be in the final stages of being cleared by the U.S. regulator, Reuters reported.

The Committee on Foreign Investment in the United States (CFIUS) is likely to give the green light to the acquisition in the coming weeks, people familiar with the matter said. The CFIUS's main role is to scrutinize the implication of foreign deals on America's national security.

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Many U.S. lawmakers reportedly wrote to Treasury Secretary Jacob Lew, earlier this year, demanding that CFIUS must subject ChemChina and Syngenta deal to stringent scrutiny. Especially due to its possible impact on domestic food security. The U.S. Department of Agriculture also joined the CFIUS review.  

A successful review by the CFIUS would remove the potential hurdle in what is touted as the Chinese company's biggest foreign acquisition till date. ChemChina and Syngenta have still not issued any official statement on the ongoing CFIUS review.    

The Syngenta deal, which was unveiled in February, would give a huge boost to ChemChina's plan to consolidate its presence in North America and Europe. Syngenta, headquartered in North Carolina, in one of the most important players in the global pesticides and seeds industry. The company generates most of its revenue from theNorth American market.

Syngenta was also pursued by the agricultural giant Monsanto co. However, last year Syngenta's management turned down the offer made by the world's largest seed company.

Chinese Companies Battling U.S Regulators  

With more Chinese companies showing interest in acquiring big American companies, U.S. regulators are facing pressure. U.S. regulators have justified their additional scrutiny of Chinese companies mostly on security grounds.

Earlier this year, Chinese firm Unisplendor Corp scrapped its decision to invest $3.78 billion in Western Digital Corp, after the CFIUS raised concerns about the transaction. Chinese telecommunication major ZTE Inc and Huawei inc also had a rough brush with U.S. regulators this year.

TagsChemChina, Syngenta AG, ChemChina's Syngenta Takeover, china