Mitsubishi Chemical Group has selected US investment firm Bain Capital as the preferred bidder for its pharmaceutical subsidiary, Tanabe Mitsubishi Pharma, in a potential deal worth in excess of $3bn, according to a report by Reuters.
The report cites unnamed sources familiar with the matter as revealing that the two parties are in advanced negotiations, after Japanese financial publication Nikkei reported on Monday that Mitsubishi Chemical is poised to sell its pharmaceutical arm to Bain for over JPY500bn ($3.2bn). Mitsubishi Chemical, though, issued a statement on Tuesday clarifying that the report did not originate from the company.
“We are continuously reviewing the ideal business portfolio of the entire group for all of our businesses, including the Pharma business, and are promoting portfolio reform with all options, including divestiture, in mind,” the company stated.
Bain Capital declined to comment on the matter.
Reuters previously reported in December that private equity firms Blackstone and Bain Capital were among the final bidders for Tanabe Mitsubishi Pharma, with the deal estimated to be worth between $3bn and $3.5bn.
