Heerlen, NL, 17 Dec 2010 07:15 CET
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 €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.”
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 biotech industry. It is also a strong testimony that Sinochem is ready to perform its social responsibility to save the energy consumption and reduce waste discharge by leveraging biotechnology. We have full confidence in DSM’s capability in terms of fermentation and biocatalytic conversion. The partnership will further promote the technical breakthrough in the anti-infectives sector and it is a strong force pushing Sinochem’s strategic development in the biochemical industry.”
Both companies are convinced that together they will be better able to capture the growth opportunities in China and other high growth economies, combining DSM’s proprietary technology position and global production footprint and Sinochem’s distribution and sales capabilities and global growth ambition in bio-pharmaceuticals. Further announcements on organization and management will be made at closing.