Site icon China Economic Review

India blocks Fosun's Gland Pharma acquisition

India’s cabinet has rejected China’s Fosun Pharmaceuticals’ $1.3 billion acquisition of Indian drug company Gland Pharma, government sources told The Wall Street Journal. After getting earlier Indian government approvals, the deal was turned down by Prime Minister Narendra Modi’s Cabinet Committee on Economic Affairs which didn’t want the company getting access to Gland’s unique injectables technology, said the sources. Fosun said neither it nor Gland had been informed of any decision. Gland Pharma didn’t respond to emailed requests for comment. “The acquisition obtained prior approval from relevant (Chinese) authorities, and is pending review and approval from the Cabinet Committee on Economic Affairs of India,” said a Fosun spokeswoman Tuesday. “Gland Pharma Limited has not received notice on the results of this review.” India’s Foreign Investment Promotion Board had already given its nod to Fosun buying an 86% stake in Gland Pharma from a group of investors including KKR & Co. But the cabinet did not agree.

Exit mobile version