Grifols Buys Biotest as Creat Pushed to Exit Blood-Plasma Stakes
(Bloomberg) -- Grifols SA agreed to buy Biotest AG for about 1.6 billion euros ($1.9 billion), pouncing after U.S. regulators pushed back on Chinese shareholder Creat Group Corp.’s expansion into the blood-plasma industry.
Grifols offered 43 euros for each ordinary share and 37 euros for each preferred share, the Spanish company said Friday. That’s 23% and 4.2% higher than Thursday’s closing prices, respectively. Bloomberg News reported late Thursday that the deal was imminent.
Creat’s strategy to expand in the global blood-plasma market was undermined when U.S. regulators pushed against Creat’s ownership in such businesses, a sensitive area. North America historically accounts for about half the global market, according to Biotest data.
The Chinese firm is also in advanced talks to sell its U.K.-based blood-plasma firm Bio Products Laboratory Ltd. in the coming weeks, people familiar with the matter said. A private equity consortium of Bain Capital and Advent International has been pursuing the asset, which has also attracted interest from rival buyout firm Permira, Bloomberg News reported previously.
The two transactions would see the Chinese group unwind a large part of a series of overseas acquisitions that began in 2016. Creat also owns a stake in domestic blood plasma firm Shanghai RAAS Blood Products Co.
Biotest ordinary shares rose as high as 43.50 euros. The preferred shares reached 39.90 euros. Grifols fell 2.4%.
Creat’s expansion drive was upended when it drew scrutiny from the Committee on Foreign Investment in the U.S., which first forced it to sell Biotest’s U.S. operations.
Barcelona-based Grifols, which has a market value of 11.7 billion euros ($13.8 billion), has been expanding in the U.S. and Asia through plasma-related acquisitions. Earlier this year, Creat offloaded BPL’s U.S. plasma centers to Grifols for $370 million.
Creat’s Tiancheng unit controls about 90% of Dreieich, Germany-based Biotest’s common stock.
Representatives for BPL couldn’t be immediately reached for comment outside regular business hours.
Nomura Securities and UBS AG advised Grifols.
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