DSM to form global anti-infectives joint venture with Sinochem Group
Royal DSM N.V., the global Life Sciences and Materials Sciences company
headquartered in the Netherlands, today announces that it has reached an
agreement with Sinochem Group to form a 50/50 global joint venture for its
business group DSM Anti-Infectives. The transaction is subject to receipt of
regulatory approvals (including approvals from regulatory authorities in China)
and customary clearances from competition authorities in the EU and elsewhere.
In addition, DSM´s works councils will be requested to render advice in relation
to the proposed transaction.The parties anticipate closing to take place in Q2
2011. Upon closing, the transaction will have retro-active effect to 1 January
2011.
As part of the joint venture agreement, Sinochem Group will take a 50% equity
interest in DSM Anti-Infectives for a total cash consideration of EUR 210 million
on a cash and debt-free basis.
The joint venture will be headquartered in Hong Kong. Current DSM Anti-
Infectives employees, in total around 2,000 people globally, will be part of the
new entity. The joint venture will include all of the current DSM Anti-
Infectives activities across the world.
The JV with Sinochem is fully in line with DSM´s stated strategy for its Pharma
cluster: creating value via partnerships. The combination of DSM´s strong global
market position in anti-infectives and Sinochem´s significant - sales -
infrastructure presents exciting future growth opportunities through combined
technologies and access to the fast growing Asian economies. DSM Anti-
Infectives, the global leader in beta-lactam antibiotics, has successfully
applied its highly innovative biotechnology knowledge to improve and transform
its business.
Stephan Tanda, Member of the DSM Managing Board and responsible for the Pharma
cluster, commented: "The intended joint venture with Sinochem Group is an
important step for DSM and our anti-infectives business. This partnership will
benefit from the strengths of both Sinochem and DSM and will allow us to grasp
market opportunities in China and other high growth economies, in addition to
securing European and American access to high quality products. Together with
Sinochem Group we will accelerate the realization of this global joint venture´s
growth strategy. I have every confidence in a successful partnership."
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Mr. Pan Zhengyi, Vice President of Sinochem Group, said: "The Chinese central
government has the great initiative to promote seven key industries of strategic
importance. Biotechnology is directly involved in four of these industries and
related with the other three. The forming of this global joint venture is
momentous for Sinochem with respect to its effort to build up its presence in