BRIEF—Kolmar Korea likely to acquire CJ HealthCare

Kolmar Korea is expected to acquire CJ HealthCare, the 10th-largest pharmaceutical company in South Korea, for around 1.3 trillion won ($1.1 billion).

This deal could be the largest in the M&A history of the local biotech industry, according a Business Korea and other media reports.

Kolmar Korea has been selected as the preferred bidder by beating Hahn & Co. As the preferred bidder, Kolmar Korea is planning to discuss additional conditions such as a continuous use of the CJ brand and continuous transactions with CJ Group subsidiaries.

It is also planning to maintain the employment of CJ HealthCare employees, which is one of CJ HealthCare’s preconditions for the acquisition.

The acquisition will make Kolmar Korea join the mainstream under its own name after having mostly manufactured for others.

Kolmar Korea expanded its business to pharmaceuticals in 2002 and has positioned itself as Korea’s leading pharmaceutical CMO by providing service to major pharmaceutical companies.