British consumer healthcare company Haleon said on Friday it has agreed to increase its stake in its Chinese joint venture to 88% from 55% for 4.47 billion yuan ($637.35 million).
The joint venture, Tianjin TSKF Pharmaceutical Co., accounted for about 40% of Haleon‘s revenues from China last year, producing and distributing brands such as pain relief products Fenbid and Voltaren and wound ointment Bactroban.
The stake acquisition would be funded using its existing cash and new third-party yuan-denominated debt, Haleon said.
The acquisition marks Haleon‘s commitment to China, a key market for the company, and the growth potential it sees in the market, Haleon CEO Brian McNamara said in a statement.
Reuters
