The EU vetoed the joint venture plan of Chinese and foreign vitamin giants

Introduction: according to the Southern Metropolis Daily, the two vitamin giants at home and abroad agree, but the EU vetoed their holding plan Recently, the reporter got the news that the joint venture plan of Roche Pharmaceutical Co., Ltd., a world vitamin giant, and Jiangshan, Jiangsu Province, a Chinese vitamin C production giant, was stranded The European Union recently rejected Roche's joint venture plan with Jiangsu Jiangshan pharmaceutical factory, because according to the anti trust law, Roche's holding plan for Jiangsu Jiangshan may cause more than 45% market share in a certain region, that is to say, the joint venture between the two sides may form a monopoly enterprise Roche also wants to share the cake For Roche, it's a very attractive thing to have a joint venture with Jiangshan, Jiangsu Province As a vitamin C producer as well as BASF in Germany, Roche is still a blank in the production of vitamin C raw materials in China Jiangsu Jiangshan Pharmaceutical Co., Ltd., which has a leading second fermentation process in China, is Roche's best partner in the field of raw material production Jiangsu Jiangshan pharmaceutical factory, whose vitamin production and export account for more than one quarter of China, has three shareholders, namely Hong Kong Zhongshan Co., Ltd., Jiangsu medical and health products import and Export Group Co., Ltd and Hong Kong China food company, in addition to Shanghai Huayuan Group, the largest holding party General manager Kong Tai told reporters that Roche and almost all shareholders have reached an agreement Except for one shareholder, a part of the shares will be taken over by Roche Roche will have a controlling position in the joint venture In fact, Roche still hasn't dispelled the idea of cooperation with Jiangshan Kong said that when the EU formally rejected Roche's merger plan, Roche and all shareholders sat down to talk again Roche expressed two wishes: first, it still hopes to participate in Jiangshan, Jiangsu Province, even if it does not hold shares; second, it hopes to cooperate with Jiangshan in OEM It can be said that Roche still wants to use the extremely cheap production cost in China to improve the market competitiveness of its preparations Even Roche's co-operation plan, which retreats to the next place, faces a big but not small variable at present, that is, a sale plan just released recently Roche will sell the whole vitamin department to DSM (DSM), the Dutch chemical giant, for 2.25 billion euros Since DSM has not involved vitamin production before, the possibility of the sale being rejected by the EU is almost nonexistent This brings a question At that time, the voice of Roche's vitamin department in China will be transferred to DSM Will DSM continue the Merger Policy of Roche and Jiangshan? At present, the demand for vitamins in the international market is growing gradually Roche and BASF are reducing their production The latter even purchases vitamin C from the Northeast Pharmaceutical General Factory of China The price of the international vitamin market has risen from about $3 at the beginning of the year to about $4 at present At the same time, domestic vitamin manufacturers have come out of the suicide price war At the end of last year, it once fell below $2.8, even to $2.6, the export price of VC, which is now stable at more than $3 Kong said that at present, several domestic vitamin manufacturers are quite optimistic about the sales form, and Jiangshan even has been booked for next year's supply In the current situation of overall recovery of vitamin market, will there be new investors? It is not impossible to compete with Jiangshan for strategic cooperation before Roche EU anti-monopoly is stricter than the United States in the examination and approval of cross-border M & A cases In the past two years, several large-scale M & A cases of multinational companies have been stillborn under the iron fist of the European Union One of the most famous is the case of GE's acquisition of Honeywell In order to ensure fair competition in the market, the European Union considers that the market share of the two companies after merger exceeds 40% as monopoly, while the American counterparts consider that the share is too low In fact, in the past year, Monti, the EU anti-monopoly Commissioner, has published a series of documents amending the anti-monopoly law, suggesting that the investigation of M & A cases should not focus on market share but on the analysis of market efficiency In addition, the EU stressed that business combinations with a combined size of more than 5 billion euros or sales of more than 250 million euros in Europe would be investigated.