Citing 'genuine concerns' Modi govt stops $1.3bn Chinese firm Fosun's bid for Gland Pharma: report
The Narendra Modi government has reportedly stalled a $1.3-billion bid by Shanghai Fosun Pharmaceutical Group (SFP) to acquire Gland Pharma.
- Aug 1, 2017,
- Updated Aug 1, 2017 4:16 PM IST
The Narendra Modi government has reportedly stalled a $1.3-billion bid by Shanghai Fosun Pharmaceutical Group (SFP) to acquire Gland Pharma.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, cited "genuine concerns" over proprietary technology developed by the Indian company going over to one of the Chinese major pharma firm.
However, both the firms involved had not been informed officialy yet, reported Bloomberg.
The deal had won the approval of the Competition Commission of India (CCI) and India's Foreign Investment Promotion Board (FIPB) earlier this year.
Chinese authorities have approved the takeover of the injectable drugmaker, but it is awaiting a nod from the Cabinet Committee on Economic Affairs of India, Shanghai Fosun said in a statement to Reuters.
The closing of the deal, which would be China's largest ever acquisition in India if approved, has now been extended to Sept. 26, the company added.
Shanghai Fosun Chairman Chen Qiyu said in a filing to the Hong Kong bourse on Tuesday that India had not informed Gland Pharma of the result of its review of the acquisition.
Based in Hyderabad, Gland owns four factories from where it supplies a variety of injectables that are widely used medicines administered through vials, syringes, bags and pumps, which are harder to make than regular drugs.
The Narendra Modi government has reportedly stalled a $1.3-billion bid by Shanghai Fosun Pharmaceutical Group (SFP) to acquire Gland Pharma.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, cited "genuine concerns" over proprietary technology developed by the Indian company going over to one of the Chinese major pharma firm.
However, both the firms involved had not been informed officialy yet, reported Bloomberg.
The deal had won the approval of the Competition Commission of India (CCI) and India's Foreign Investment Promotion Board (FIPB) earlier this year.
Chinese authorities have approved the takeover of the injectable drugmaker, but it is awaiting a nod from the Cabinet Committee on Economic Affairs of India, Shanghai Fosun said in a statement to Reuters.
The closing of the deal, which would be China's largest ever acquisition in India if approved, has now been extended to Sept. 26, the company added.
Shanghai Fosun Chairman Chen Qiyu said in a filing to the Hong Kong bourse on Tuesday that India had not informed Gland Pharma of the result of its review of the acquisition.
Based in Hyderabad, Gland owns four factories from where it supplies a variety of injectables that are widely used medicines administered through vials, syringes, bags and pumps, which are harder to make than regular drugs.