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US firm to scrap giant takeover
By Cathy Ding |
July 31, 2010, Saturday
|
Print Edition
Print Edition
UNITED States clinical research company Charles River Laboratories International is to scrap a deal that could have been the largest foreign takeover of a Chinese company, citing investors' objections.
The US company decided to terminate the transaction given "shareholders' concerns and our commitment not to proceed without their support," James Foster, president and chief executive officer of Charles Rivers, said yesterday in a statement.
Wuxi PharmaTech will receive a US$30 million break fee from the American company.
Charles River announced a plan in April to buy Wuxi PharmaTech Inc for US$1.6 billion in an effort to create a global contract research organization.
Wuxi PharmaTech's strategy will remain unchanged and it will "build a broad R&D service platform to be well positioned to meet customers' needs," the Chinese company said. Wuxi is well positioned to benefit from strong market demand as "trends for greater outsourcing and offshoring of R&D will continue," said Ge Li, Wuxi's chairman and chief executive officer.
The company, established in December 2000, owns testing facilities in Shanghai, Suzhou and Tianjin and serves multinational drug makers, including Pfizer and Merck.
The US company decided to terminate the transaction given "shareholders' concerns and our commitment not to proceed without their support," James Foster, president and chief executive officer of Charles Rivers, said yesterday in a statement.
Wuxi PharmaTech will receive a US$30 million break fee from the American company.
Charles River announced a plan in April to buy Wuxi PharmaTech Inc for US$1.6 billion in an effort to create a global contract research organization.
Wuxi PharmaTech's strategy will remain unchanged and it will "build a broad R&D service platform to be well positioned to meet customers' needs," the Chinese company said. Wuxi is well positioned to benefit from strong market demand as "trends for greater outsourcing and offshoring of R&D will continue," said Ge Li, Wuxi's chairman and chief executive officer.
The company, established in December 2000, owns testing facilities in Shanghai, Suzhou and Tianjin and serves multinational drug makers, including Pfizer and Merck.
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