China’s acquisition targets are just getting bigger. China National Chemical Corporation (ChemChina) announced on February 3 that it has agreed to acquire the Swiss agrochemical and seeds company Syngenta by way of a public tender offer.

The agreement comes as the board of directors of Syngenta unanimously recommended ChemChina’s offer to acquire 100% of Syngenta’s equity at US$465 per share in cash. In addition, the offer will allow the payment of a special dividend of CHF5 payable immediately before closing, subject to the approval of Syngenta’s shareholders.

The intended offer values Syngenta’s total outstanding share capital at US$43 billion. The acquisition is subject to anti-trust reviews and approval from relevant countries.

The transaction is the largest outbound transaction by a Chinese company ever, exceeding the US$18.2 billion bid by CNOOC for Nexen in July 2012, and the largest full cash transaction in Chinese history. It is also the largest M&A deal globally since Dow Chemical’s US$68.6 billion bid for E I du Pont de Nemours & Company in December 2015, according to Dealogic.

Kamel Mellahi, a professor of strategic management at Warwick Business School, who has studied key Chinese businesses, says the deal is going to take ChemChina to a whole new level. “For ChemChina, acquiring one of the world’s leading manufacturers of agricultural and chemicals and seeds with world class resources and capabilities will enable it to access valuable knowledge that could help its drive for innovation,” he adds.

ChemChina is keen to keep Syngenta’s operations intact, including its management and employees, and for its headquarters to remain in Basel, Switzerland. ChemChina chairman Ren Jianxin says in a statement that the company looks forward to Michel Demare remaining as vice chairman of Syngenta and lead independent director, and working with Syngenta CEO John Ramsay and the management and employees.

ChemChina will accelerate the implementation of Syngenta’s strategy, while seeking to open new markets and opportunities for Syngenta’s next phase of growth. The Chinese firm plans to list Syngenta in a few years.

HSBC and CITIC Bank International are the financial advisers for this transaction, while Simpson Thacher & Bartlett and Homburger served as legal advisors.

Chinese bidders have so far announced a total of 66 outbound M&A transactions worth US$68 billion in 2016 – the strongest start to a year on record and already the third highest full year total on record behind 2015 with US$112.5 billion and 2014 with US$71.4 billion.