Shanghai Fosun Pharmaceutical (Group) has emerged as a top bidder for Indian pharmaceutical company, Gland Pharma. Fosun, which is owned by Chinese billionaire Guo Guangchang, has reportedly made a $1.27 billion offer to acquire the Indian pharmaceutical firm.          

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Fosun entered the bidding race quite late as US giant Baxter and private equity fund Advent had made offers as early as May. However, it is now reported that both have opted out of the race after Fosun revised its offer last week to $1.27 billion. The offer is more than Baxter and Advent had offered.

Shanghai Fosun is believed to have completed all legal formalities last week. A formal announcement of the acquisition is likely to be made in the third week of this month. If Fosun passes all regulatory approvals, it will be the first big takeover of an Indian company by a Chinese firm.

The deal assumes even more importance given that current diplomatic relations between India and China are strained. This has heightened security concerns over Chinese Foreign Direct Investment into India. This is also the first big M&A deal by Fosun group since its billionaire owner Guo Guangchang went missing last year.            

Gland Pharma is a Hyderabad-its based Pharmaceutical Company that manufactures injectable drugs. It supplies injectable drugs to top Indian and US companies like Dr. Reddy and Mylan. The company is backed by Indian private equity firm KKR. KKR will reportedly loose all the stake in the company after this acquisition.  

No officials from KKR or Gland Pharma have so far commented on the deal.

TagsShanghai Fosun Pharmaceutical, Fosun Group, Gland Pharma, Guo Guangchang