Mitsubishi Chemical to Sell Tanabe Mitsubishi Pharma to Bain Capital
TOKYO (Reuters) - Mitsubishi Chemical Corp. (TYO: 4188) announced on Friday its plans to divest its pharmaceutical unit, Tanabe Mitsubishi Pharma, to Bain Capital for 510 billion yen ($3.36 billion). This transaction aligns with Mitsubishi Chemical's strategy to optimize its portfolio.
Buyout transactions driven by private equity firms are gaining momentum in Japan. Companies are increasingly divesting non-core businesses to enhance corporate and shareholder value.
Bain Capital and other foreign funds have intensified their acquisition efforts, contributing to a surge in inbound mergers and acquisitions in Japan. According to LSEG data, the total value of inbound deals reached $85.5 billion in 2024, an increase of over 600% compared to the previous year.
In 2020, Tanabe became a subsidiary of Mitsubishi Pharma to foster synergies between the two entities. However, Mitsubishi Chemical stated, "Changes in the industry and business structure have reduced the potential for synergies."
The company explained that significant investments are necessary to enhance Tanabe Mitsubishi Pharma's R&D capabilities and drive future growth. However, under its ownership, such investments were deemed unfeasible.