Chinese drugmaker Sanjiu Enterprise Group has informed the Industrial Revitalization Corp. of Japan of its plans to buy the pharmaceutical business of Kanebo Ltd., an official of the Chinese firm's Japan unit said Friday.
Sanjiu plans to carry out the purchase via the Japanese subsidiary after Kanebo and the IRCJ finalize a restructuring package in mid-May, opening the door for any deals with outsiders, the official said.
The IRCJ approved last month a 366 billion yen aid package for Kanebo after the struggling cosmetics firm asked for financial help from the state-backed body charged with turning around troubled businesses.
Sources familiar with the restructuring package said that tender offers will probably be invited if one or more of Kanebo's business segments are put up for sale, although a final decision on these sales is unlikely to be made until fall.
Kanebo ranks second after Tsumura & Co. in the Chinese-medicine market in Japan.
The license it owns for the production of prescription Chinese medicines, which requires a lengthy screening process, is attractive for companies aspiring to break into the market.
Sanjiu purchased a drugmaker based in Toyama Prefecture last year and hopes to take advantage of Kanebo's well-known brand power to boost its sales in Japan.