Fosun Pharma still awaiting approval on takeover of Indian drugmaker

Updated 2017-08-01 14:34:07 Global Times

Chinese healthcare provider Shanghai Fosun Pharmaceutical Co has said that the company has not received any notification from the Indian authorities about the approval result of its proposed .3 billion takeover of Indian drugmaker Gland Pharma, according to a filing the company sent to the Hong Kong Stock Exchange on Tuesday.

The comment comes after Bloomberg News cited sources familiar with the matter in a report on Monday which stated that India's Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has decided to block the deal amid rising tensions between the two countries.

Fosun Pharma, a subsidy of Fosun Group led by billionaire Guo Guangchang, announced in July 2016 that it agreed to acquire an 86.1 percent stake in Hyderabad-based Gland Pharma in a deal valued up to .3 billion.

The transaction marked the largest-ever overseas merger and acquisition deals by domestic pharmaceutical makers and also the biggest Chinese acquisition in India.

Earlier on Thursday, Fosun Pharma said in a filing sent to the Hong Kong Stock Exchange that the termination date of acquisition will be extended to September 26 as the deal is still subjected to the approval of India's CCEA.

This is the second time Fosun Pharma has postponed the deal. On April 27, the company said in another filing sent to the Hong Kong bourse that the termination date for the deal was set for July 27.

"The case has been approved by China's National Development and Reform Commission, and has completed anti-monopoly declarations in the US and India. Also, the transaction has been reviewed by India's Foreign Investment Promotion Board and was recommended to CCEA for further approval," said the filling.

Founded in 1978, Gland Pharma is the first Indian company to win US Food and Drug Administration approval for a liquid injectable, with revenues mainly from the US and European market.

Fosun Pharma hopes that the takeover of the leading Indian drugmaker will help it to expand its business network in India and the US, according to media reports.

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