Greater Chinese outbound M&A activity 2011: Life Sciences & Health Care
LSHC sector M&A report based on Mergermarket M&A intelligence service data
27% of greater China M&A deals for the first half 2011 were worth in excess of USD $250million, with total greater China M&A for the period reaching a new high of 1.3% of total global deals by value - greater China being Mainland china, Hong Kong.
By comparison with the E&R, Consumer Business and Financial Services sectors, M&A activity in Life Science & Health Care (LSHC) has been small, although the largest deal in recent years was the acquisition of Symbion Health’s pharmacy business by the Australian pharmaceutical subsidiary of the Hong Kong-based Zuellig Group, for USD 645 million including debt. From Zuellig’s perspective the deal represented the opportunity to break into the Australian wholesale and retail pharmaceutical industry, with Symbion’s Chemmart and Terry White Chemists retail brands immediately recognisable on any Australian high street. Moreover Symbion Pharmaceuticals’ share of the market in supplying pharmaceutical products to Australian pharmacies and hospitals generally was in excess of 30%.
This report uses data from independent M&A intelligence service, mergermarket, to review Chinese outbound M&A activities in life sciences and health care since 2005, as well as offering insights into the drivers of change in activity and where the market is headed over the next 18 months.
The section includes the following points:
- Near term outbound LSHC M&A activity is likely to be restricted to market leaders (not Tier 2)
- Expectations vary by LSHC subsector.
Australian readers may also find value in reading the Report’s Executive Summary.