DSM NV to Acquire Remainder of Shanghai Joint Venture

According to Chinese state media, leading Netherlands-based vitamins producer Royal DSM NV has reached an initial agreement to acquire Shanghai Pharmaceutical Group's 36% stake in its local vitamins joint venture. The purchase is reported to be worth some EUR10mn (US$13.05mn), and the company will become a wholly owned subsidiary, to be renamed DSM Vitamins (Shanghai) Ltd.

DSM's existing stake was originally acquired from Swiss drugmaker Roche, following the sale of Roche's nutritional products business in 2003. The company also recently agreed a new penicillins venture with leading Chinese drugmaker North China Pharmaceuticals Corporation. The Shanghai purchase is likely to raise DSM's stake in both segments, which are a key feature of China's predominantly basic drug market.