Baxter has secured the approval of the Chinese Ministry of Commerce for its $4bn acquisition of Swedish medical technology company Gambro from private equity firms EQT and Investor.
Under the terms of the approval, Baxter will have to sell its renal replacement therapy business and end an outsourcing production deal in China with Japan’s Nipro Corporation by march 2016, said Reuters.
EQT and Investor, which are both headquartered in Stockholm, agreed to sell the company back in December 2012. EQT IV holds a 51 per cent stake in Gambro, while Investor AB own the remaining interest.
EQT and Investor took Gambro private from the Stockholm Stock Exchange through a joint public offer in 2006 for a total enterprise value of SEK35bn ($5.35bn). The company has since been split into three divisions, Gambro Healthcare, CaridianBCT and Gambro.
Private equity fund Bridgepoint bought Gambro Healthcare for SEK6.1bn in 2007, while CaridianBCT was sold to Japanese medical technology company Terumo Corporation for $2.6bn four years later.
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