The biggest ever Chinese acquisition on Indian soil may flounder as a border standoff between the two countries has cast a shadow over Shanghai Fosun Pharmaceutical Ltd’s proposed acquisition of Hyderabad-based Gland Pharma Ltd, three people familiar with the matter told VCCircle.
Shanghai Fosun Pharmaceuticals (Group) Co. Ltd has received approval from Foreign Investment Promotion Board (FIPB) to pick up a majority stake in Hyderabad-based Gland Pharma Ltd.
The China-based pharmaceuticals company had agreed to acquire an 86% stake in Gland Pharma last year for $1.27 billion (Rs 8,440 crore). Based on this, the Indian firm will be valued at $1.46 billion.
The founders of Gland Pharma, Ravi Penmetsa and his family members, will retain their stake in the entity and run the operations.
The transaction will, however, have to wait till the company receives approval from the cabinet committee on economic affairs, Penmetsa, the managing director and CEO of Gland Pharma, told VCCircle.
read more- VC