Bain is said to near 500 billion yen deal for Mitsubishi pharma unit

BAIN Capital is nearing a deal to buy Mitsubishi Chemical Group’s pharmaceutical unit, sources familiar with the matter said, adding to a dealmaking boom in Japan.

The US-based private equity firm and Mitsubishi are finalising details of a transaction that could be announced as soon as Friday (Feb 7), the sources said, asking not to be identified because the information is private. A deal could value Mitsubishi Tanabe Pharma at more than 500 billion yen (S$4.4 billion), the sources said.

Bain has emerged as the likeliest buyer for the Japanese pharmaceutical company after outbidding other investment funds, the sources said. Talks are still ongoing and no final decisions have been made, the sources said.

A representative for Bain declined to comment, while a spokesperson for Mitsubishi Chemical said the company is not the source of the report, and that it will disclose quickly if there are any matters that need to be in the future.

Nikkei first reported last month that Bain had emerged as the preferred bidder for the Mitsubishi unit.

Bain has been ramping up investment in Japan, a hive of dealmaking activity. The Boston-based firm is duking it out with KKR for Fuji Soft, with KKR this week once again raising its offer for the Japanese software company. BLOOMBERG