In a significant development in the alternative asset management sector, companies such as Blackstone and Bain Capital have submitted their final takeover bids for Mitsubishi Tanabe Pharma, a subsidiary of Japan’s Mitsubishi Chemical Group. The final market capitalization is anticipated to be between USD3 billion and USD3.5 billion, as reported by Reuters. Goldman Sachs has been appointed to manage the bidding process, with the final binding bids scheduled for December 24.
Mitsubishi Chemical’s Consideration of Business Reconstruction
In September of this year, Mitsubishi Chemical was contemplating a business reconstruction, as reported by Nikkei, due to a decline in its main chemical business. Acknowledging the high costs associated with pharmaceutical research and development, the company initiated preparations for the potential sale of its Mitsubishi Tanabe Pharma unit. Consulting firms were hired to identify prospective buyers, and discussions were held with foreign investors. However, Mitsubishi Chemical has refuted some reports of unit sales, stating, “there is no such fact,” while also indicating that “all options, including sale, are being considered to advance business portfolio reform” for all its businesses, including the pharmaceutical sector.
Recent Deal and Historical Context
In November of the previous year, China-based Grand Pharmaceutical Group Co., Ltd. (HKG: 0512) entered into an agreement with Mitsubishi Tanabe Pharma to acquire its Tianjin subsidiary, a transaction that was completed in July 2024. Concurrently, Mitsubishi Tanabe Pharma announced the start of an early retirement program for its employees. The company, which traces its roots back to Tanabeya Infusing Medicine in 1678, was officially established in October 2007 through the merger of Mitsubishi Pharma and Tanabe Seiyaku. Mitsubishi Tanabe Pharma boasts a robust product pipeline in central nervous system, immune inflammation, and oncology therapeutics, and according to its interim financial report, the company generated revenues of USD1.51 billion.-Fineline Info & Tech
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