Modi Govt stops Gland Pharma acquisition by Chinese firm
The Centre has stalled a $1.3-billion (or bid by Shanghai Fosun Pharmaceutical Group (SFP) to get an 86% stake+ in Hyderabad-based Gland Pharma, citing “genuine concerns” over proprietary technologies developed by the Indian firm moving over to some Chinese pharma major.
Top government officials on Monday dismissed media reports that the decision was linked to the current border standoff between both countries. Sources say Gland Pharma has a lead in injectables, an area where Chinese companies lag Indian pharma companies. Gland Pharma says it is a world leader in the Glycosaminoglycans range of molecules and has pioneered engineering in India.
This past year, Chinese billionaire Guo Guangchang, who runs a diversified conglomerate under the banner of Fosun International, struck the billion-plus-dollar deal to buy Gland Pharma after the government’s decision to allow 74% overseas investment in pharma production through the automatic route.
After emptying FIPB, the proposed acquisition needed the nod of the Cabinet Committee on Economic Affairs. Besides being the largest Chinese acquisition in India, the deal would have also seen one of that country’s wealthiest persons investing in the Indian production story, providing heft to Prime Minister Narendra Modi’s ‘Make in India’ initiative.
KKR, an American private equity firm and promoter Ravi Penmetsa’s household, own over 95% stake in the organization. They had appointed Co & Jefferies to find a buyer. The bidding procedure had attracted interest from US-based Baxter and buyout investor Advent International, among others. Gland Pharma said it had no information regarding the decision of the government.
“We’ve not heard anything about it (rejection). Its clearance was given by the FIPB in March. Thereafter we’ve been following up, but we don’t know anything further than that. We did not expect any hurdles,” a senior Gland Pharma executive said.
As per some sources close to the Finance Ministry, this move was taken after the repeated aggression by China in the Doklam pass and with a motive to prevent excessive Chinese investment in India.
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Despite their 'empty rhetoric' & 'false bravado' the Chinese suffer from 2 huge handicaps:
(1) China has become a nation of 'buddas' where people aged 55 to 60 are considered 'youth'. China can't afford to lose their soldiers on purposeless territorial disputes
(2) A majority of Chinese are against their own Government. In case of a war, MORAL SUPPORT from Chinese citizens will be lacking
They have plenty of cannon fodder.
Our nation has none.
For us every life is precious.
Knowing that Chinkis will still fail.
In fact it is ' game over',
Only shouting is left
China is in hurry and they have finally decided to show Asia that they are the masters. While Japan and other countries have meekly submitted themselves to the Chinese transgressions in the south china sea, India continues to be a pain in China’s Global ambitions. India’s refusal to join the Belt corridor and the continuing recognition given to Tibet and Dalai Lama have taken the Chinese beyond the Inflexion point and the Bhutan stand off has come in handy for them. With hundreds of billion dollars pumped into their army and air force, their assets have long overtaken India in terms of firepower and the Chinese this time, are going to flex their muscles in a big way, But then, India does not maintain a standing army of one million men to run away from China. It is time, China is given a bloody Nose. India should move its Mountain regiments, all other combat troops to the Chinese Border along with Battle tanks, artillery and missiles. this should be done all along the Ladakh to Sikkim Regions. Activate all the forward air force bases, keeping its powder dry. India should choke the Malacca straights with its navy, squeezing the Chinese Supply Lines. India should arm all its Nuclear war heads in Brahmos, Prithvi and in all of the Agni Missiles. China should be taught a lesson for being a Bully. India should make very clear to China as well as to the International Community that it WILL use Nuclear option if China threatens its sovereignty.
Chinkis are on a steep slippery slope downhill.
Majority of their population is over 50.