China/India: Fosun cuts offer, will buy majority in India’s Gland Pharma

Shanghai Fosun Pharmaceutical, a unit of China’s Fosun Group, has agreed to acquire 74% of Indian drug company Gland Pharma for US$1.1 billion, the Chinese drugmaker said on Sunday, September 17, reviving a deal that was widely speculated to have been blocked by the Indian government.

Fosun has agreed to cut the size of the stake it will buy in Gland Pharma to 74%, having previously targeted an 86% stake valued at about US$1.26 billion. Fosun in a statement to the stock exchanges said that its board had approved the new plan to acquire 74%, which would see an investment of up to US$1.09 billion.

Fosun said in a statement on Sunday, September 17, the deal no longer required a nod from India’s Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi. It said it had already received approval from Chinese regulators and applied for antitrust approval in the United States and India. The firm has also delayed the closing date for the deal to October 3 from September 26, Reuters added.

Full Content: Reuters

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