Sinochem Group, on December 17th, has reached an agreement with Royal DSM N.V., the global Life Sciences and Materials Sciences Company. to form a 50/50 global anti-infectives joint venture. 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 € 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 DSM is fully in line with Sinochem Group’s long-term development strategy in the biochemical industry. The combination of Sinochem Group's significant sales infrastructure and access to the fast growing Asian economies, and DSM's strong technology capacity and global market position in anti-infectives presents exciting future growth opportunities.
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. The forming of this global joint venture is momentous for Sinochem Group with respect to its effort to build up its presence in biochemical industry. It is also a strong testimony that Sinochem Group is ready to perform its social responsibility to save energy consumption and reduce waste discharge by leveraging biotechnology. We have full confidence in DSM’s capability in terms of fermentation and bio-catalytic conversion. The partnership will further promote the technical breakthrough in the anti-infectives sector and it is a strong force pushing Sinochem Group’s strategic development in the biochemical industry.”
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 Group 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.”
Both companies are convinced that together they will be better able to capture the growth opportunities in China and other high growth economies, combining Sinochem Group’s distribution and sales capabilities and global growth ambition in biochemical industry and DSM’s proprietary technology position and global production footprint. Further announcements on organization and management will be made at closing.
DSM
Royal DSM N.V.., the Life Sciences and Materials Sciences Company, creates solutions that nourish, protect and improve performance. Its end markets include human and animal nutrition and health, personal care, pharmaceuticals, automotive, coatings and paint, electrical and electronics, life protection and housing. DSM manages its business with a focus on the triple bottom line of economic performance, environmental quality and social responsibility, which it pursues simultaneously and in parallel. DSM has annual net sales of about €8 billion and employs some 22,700 people worldwide. The company is headquartered in the Netherlands, with locationss on five continents. DSM is listed on Euronext Amsterdam. More information: www.dsm.com
DSM Anti-Infectives is one of the world’s leading suppliers of active pharmaceutical ingredients (APIs), and the global market leader in ß-lactam antibiotics. Its leadership position in this biggest class of anti-infectives is based on its use of proprietary biotechnology. These processes provide DSM Anti-Infectives with a leadership position in terms of both cost and a significantly more favorable ECO footprint, reducing energy consumption and waste generation dramatically, compared to conventional technology. More information:http://www.dsm.com/en_US/html/dai/daihomepage.htm