BEIJING - China's State-owned Sinochem Group announced it has reached a framework agreement Friday with the Netherlands-based Royal DSM NV to buy a 50-percent stake in DSM's anti-infectives unit.
As part of the agreement, Sinochem will pay DSM NV 210 million euros ($280 million) for the purchase.
The global joint venture company is to be headquartered in Hong Kong, and all the current DSM Anti-Infectives activities across the world will be based there, Sinochem said in a website statement.
Meanwhile, around 2,000 employees in the current DSM Anti-Infectives unit will be part of the new entity.
The transaction is yet to be approved by regulatory authorities in China and the EU, the statement said.
"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," said Pan Zhengyi, Sinochem Group vice president.
Stephan Tanda, member of the DSM Managing Board, said this partnership would allow the two companies to grasp market opportunities in China and other high growth economies.
Based in Beijing, Sinochem Group is China's leading chemical service provider with businesses ranging from agriculture, energy, to chemical and finance. DSM Anti-Infectives is one of the world's leading suppliers of active pharmaceutical ingredients (APIs).
