Matrix to buy majority stake in Chinese co

Hyderabad, March 23 | Updated: Mar 24 2005, 05:43am hrs
Taking forward its strategic alliance with MCHEM Pharma (Group) Ltd of China, Matrix Laboratories Ltd has signed a revised memorandum of understanding to acquire a majority stake (60%) in the Chinese company and its other associate group companies.

The consolidation for the acquisition of the ownership interest will be in cash or in kind or a combination of both, subject to a detailed due diligence and all the requisite approvals, Matrix said.

The decision to enter into China is part of an overall long-term strategy to become an end-to-end player and thus integrate both forward and backward. In line with this strategy, Matrix acquired a finished dosage unit in January in Nashik. Now, this JV is an initiative from Matrix to backward integrate and further strengthen the supply chain, the company said further.