China National Chemical Corp, China’s leading state-owned industrial firm, is in talks to buy Syngenta, the world’s largest agrichemical company but its initial offer of almost $42 billion was rejected, reports the Herald Voice Daily News.

Syngenta is also talking to other potential suitors, the news agency said. The Chinese company has a history of acquiring interests in Western specialty chemicals businesses.

“Future demand for pesticides globally will stay strong, particularly for a country like China, which is trying to boost grains production,” Duan Yousheng, an analyst with China Pesticides Industry Association, said.

According to a Bloomberg report, although Syngenta rejected the Chinese company’s offer because of potential regulatory issues, the companies are reportedly entering talks over a merger, and an agreement could be reached “within weeks.”

Syngenta is the world’s largest producer of agricultural pesticides, including chemicals that kill weeds and bugs. Seed giant Monsanto attempted to land Syngenta this past year but finally abandoned its takeover bid in August.

For a more comprehensive look at the possible deal, visit the New York Times article: Chinese Overtures to Syngenta at a Time of Susceptibility