Sinochem to take 50 percent stake in DSM unit
China's Sinochem Group will take a 50 percent stake in DSM Anti-Infectives for 210 million euros (279 million dollars) Netherland's DSM chemical and pharmaceutical group said Friday.
"The intended joint venture with Sinochem Group is an important step for DSM and our anti-infectives business," said Stephan Tanda, a member of the DSM managing board responsible for pharmaceutical operations -- primarily anti-bacterial and anti-fungal products.
"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."
The transaction, subject to approval by regulators, should be finalised in the second quarter of 2011.
The joint venture will be headquartered in Hong Kong and include all of DSM Anti-Infectives' 2,000 employees around the world.
"The forming of this global joint venture is momentous for Sinochem with respect to its effort to build up its presence in biotech industry," Sinochem Group Vice President Pan Zhengyi was quoted as saying in a statement.
Sinochem, created in 1950, employs 40,000 people in the industrial chemical, pharmaceutical, agriculture, energy, property and finance sectors.
DSM posted annual turnover of around eight billion euros last year and employs some 22,700 people.
© 2010 AFP