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China's YiChang HEC ChangJiang to acquire drug ingredient manufacturer

China's YiChang HEC ChangJiang Pharmaceutical Co. Ltd. agreed to acquire HEC Pharmacy Co. Ltd. for 124,700 yuan in cash.

HEC Pharmacy manufactures active pharmaceutical ingredients. YiChang HEC ChangJiang, which manufactures pharmaceutical products, expects the deal to enhance its production.

Shenzhen HEC Industrial Development Co. Ltd. is making the sale through its units HEC Pharm Co. Ltd., which owns 85% of HEC Pharmacy, and Yidu HEC Industrial Development Co. Ltd., which owns the remaining 15%. The units will receive 105,995 yuan and 18,705 yuan, respectively, of the cash consideration within 15 business days of the transaction gaining regulatory approval.

As of Dec. 14, US$1 was equivalent to 6.91 Chinese yuan.