Syngenta rejected ChemChina's $42 million acquisition deal due to regulatory concerns according to reports.

Bloomberg reported that the world's largest agrichemicals company turned down the ChemChina deal because it believes the figure was too low and that there are various regulatory risks to consider. Antitrust and political concerns are some of the major regulatory issues.

According to Reuters, the state-owned China National Chemical Corp. would be an industry leader if it would successfully acquire Syngenta's 19 percent market share.

Buying Syngenta would have propelled ChemChina further into its ambitions for international expansion. It would have also enhanced the technological knowledge of China. ChemChina has always been interested in taking over Western chemical businesses, such as the Norwegian Elkem, French Adisseo, Australian Qenos, and Italian Pirelli. 

The world's largest agrichemicals company also turned down a $47 billion takeover deal from Monsanto Co. earlier this year. Two months after that, its chief executive resigned. Now, it is pressured to increase returns for its shareholders.

During the news of about the takeover, Syngenta's Swiss-listed shares were 11 percent higher, while trading went up 7.2 percent at 370 Swiss francs Friday. Meanwhile, Syngenta's US-listed shares were up 14 percent to $79.22 in Thursday, according to the Economic Times.

"Future demand for pesticides globally will stay strong, particularly for a country like China, which is trying to boost grains production," China Pesticides Industry Association Duan Yousheng said. Syngenta has sales channels in over 120 countries and it is a world leader in research, and pesticide sales volume.

Some shareholders are not happy with the Swiss company's defensive management style. These shareholders questioned Syngenta's ability to enhance its financial fortunes as the demand for agricultural commodities decline.

Syngenta announced buy back plans or more than $2 billion worth of stock through selling its vegetable seeds business. This is a move for the company to appease its shareholders.