China’s largest overseas pharmaceutical acquisition hits roadblock in India
China’s largest ever overseas pharmaceutical acquisition has been reportedly thwarted by Indian authorities, who have once again postponed the closing of the $1.3 billion deal amid the two nation’s escalating tension along the border.
According to Reuters, India has privately raised objections to Chinese firm Shanghai Fosun Pharmaceutical Group’s takeover of Indian drug maker Gland Pharma, despite receiving approvals from the Competition Commission of India and India’s Foreign Investment Promotion Board.
The takeover, which would be the largest overseas acquisition by a Chinese pharmaceutical firm to date, has now been extended to September 26. This is not the first time that the deal closing has been postponed. In April, the company announced that the deal would be extended to July 27 because of necessary approval procedures from the Indian side.
Fosun cannot be reached for comment as of press time.
The alleged objections come on the heels of escalated India-China tensions, as the two nations are currently embroiled in a stand-off along a border. India’s concerns are not related to the border tension, but to giving control of a large pharmaceutical company to a questionable Chinese entity, according to Reuters, which cited an unnamed source.
Chinese companies’ investment in India has been hitting roadblocks in recent years, despite the latter’s efforts on seeking investments from neighboring countries to boost its economy. According to a report by The Economic Times in January, the Bank of China is still waiting for approval of its 2015 plan to open its first branch in India, triggering concerns that this may deter potential Chinese investors.
(Source_title：China’s largest overseas pharmaceutical acquisition hits roadblock in India)