BEIJING Aug 13 China's Ministry of Commerce has
approved Baxter International Inc's $4 billion bid for
Sweden's Gambro AB provided Baxter sells its global continuous
renal replacement therapy (CRRT) business, among other
The U.S. dialysis equipment maker must also end an
outsourcing production deal in China with Japan's Nipro
Corporation by March 31, 2016. The approval is subject to
corporate monitors as well, the ministry said.
The conditional nod from China comes after Baxter secured EU
regulatory approval on July 22, having pledged to sell off the
CRRT business, including supply deals and intellectual property
rights. The CRRT division accounts for about 2 percent of
Baxter's renal product sales.
The deal, which Baxter announced in December last year,
would make it the second-biggest manufacturer in the dialysis
market, a sector set to expand in line with rising obesity and
Baxter and Gambro compete against U.S.-based DaVita
Healthcare Partners Inc and Germany's Fresenius Medical
Care AG & Co, the biggest player in the hemodialysis
Baxter is buying Gambro from Swedish investment holding
company Investor AB and its partly owned private
equity company EQT.
China has approved mergers with conditions in many cases,
but has only blocked one deal since its anti-monopoly law came
into force in 2008. That was Coca-Cola's CCE.N attempt to
purchase juice maker Huiyuan in 2009.