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.”
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.
