US competition and security authorities have given clearance to the $43bn takeover of the Swiss seed and agrochemical company, Syngenta, by the state-owned Chinese chemical company, ChemChina.

In a statement released on Monday, Syngenta and ChemChina said the proposed transaction between the two companies had received clearance from the Committee on Foreign Investment in the United States (CFIUS).

Receiving the go-ahead from the CFIUS was seen as the only major hurdle that might trip up the deal by investors. As a result, Syngenta shares have surged more than 12% in early trading on Monday.

Syngenta announced last February that it had accepted a $43b takeover bid from ChemChina in a deal that ranks as the largest ever overseas transaction by a Chinese company. The global agrochemical industry has entered a major process of consolidation in the last 12 months.

Syngenta was previously a takeover target on three separate occasions by its US rival Monsanto, while in December last year, Dow Chemicals and DuPont agreed to merge in a $130bn deal. More recently in July, the German chemical company Bayer made a $64bn offer to takeover Monsanto. That offer was rejected by Monsanto management.