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China/India: Fosun purchasing Indian pharma company

 |  July 28, 2016

Shanghai Fosun Pharmaceutical Group Co Ltd has agreed to buy an 86 percent stake in Gland Pharma: for up to $1.3 billion, the largest acquisition of an Indian company from abroad yet this year.

The deal was announced by both sides on July 28, and is the first major move by the Fosun group since Guo Guangchang, founder of flagship holding firm Fosun International Ltd and one of China’s best-known entrepreneurs, went missing for a short period of time late last year.

The acquisition, if it passes regulatory approvals, would also underscore a positive outlook for drugmakers in India, which are a major global supplier and count the United States as their largest export market, helped by lower manufacturing and labor costs.

Fosun stated it would buy 86.1 percent of Gland, and planned to raise a maximum of $800 million in loans from financial institutions to help fund the deal.

Full Content: Channel News Asia

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