Will Fosun’s deal go ahead amid the Sino-Indian spat?
Fosun Pharma claims that it is still waiting for approval from Indian authorities, despite reports that the deal is expected to be rejected
As bilateral tensions between China and India escalate, the biggest-ever Chinese acquisition bid in India by China’s top private overseas acquirer Fosun could be in jeopardy.
The Times of India on Tuesday cited top Indian officials as saying the rejection was made due to “genuine concern” over proprietary technology developed by an Indian company being turned over to a Chinese pharma major.
Bloomberg also reported quoting unnamed sources familiar with the matter, that India was poised to reject the deal, scuppering the biggest-ever Chinese acquisition in the country.
Fosun Pharma has so far maintained that it is still waiting for approval for the deal.
“The acquisition obtained prior approval from relevant PRC (Chinese) authorities, and is pending review and approval from the Cabinet Committee on Economic Affairs (CCEA) of India. Gland Pharma Limited has not received notice on the results of this review,” the company said in a reply to the South China Morning Post.