FosunPharma and Gland Pharma have devised a fallback strategy to implement if India decides to prohibit Fosun’s planned $1.3 billion acquisition of an 86% stake in Gland. The two companies plan to scale back the size of the transaction, selling a 74% ownership of Gland (presumably at a price of about $1.1 billion). India’s Cabinet Committee of Economic Affairs (CCEA) reviews any foreign acquisition of a domestic company if it involves ownership of 75% or more. Otherwise, the approval is automatic. The CCEA is holding up a ruling because of a border dispute between India and China, not because it has any problems with the deal itself.
ChinaBio Today
