(Yicai) June 10 -- China National Biotec Group plans to acquire a controlling stake in Pacific Shuanglin Bio-Pharmacy, in a deal that could transform the competitive landscape of China’s blood products industry.

Pacific Shuanglin’s controlling shareholder has signed a framework agreement with CNBG to transfer its entire 21.03 percent stake in the company, the Guangdong-based target said late yesterday. The all-cash deal is based on the CNY3.844 billion (USD535 million) paid by the current controller in March 2023, plus interest accrued at 9 percent per annum since that time.

CNBG also owns Tiantan Biological, China’s second-largest blood products firm by revenue. Tiantan has 85 collection centers in 16 provinces, which garnered 2,781 tons of plasma last year, accounting for about 20 percent of China’s total. The company sold CNY6.01 billion (USD837.4 million) of blood products in the year, according to its annual earnings report.

Pacific Shuanglin has 38 centers in the provinces of Guangdong and Heilongjiang, which took over 1,400 tons of plasma in 2024. Its sales of blood products stood at CNY2.65 billion. Whether the two rivals will be further integrated after the transaction remains unknown.

China has long maintained strict controls over blood product manufacturers for biosecurity reasons, and no new manufacturers have been approved since 2001. High industry barriers and strict regulatory oversight of plasma center resources mean that any consolidation of assets and businesses among major players will reshape the industry’s competitive landscape.

There have been a number of other mergers and acquisitions in the industry recently, including Haier Group’s acquisition of a controlling stake in Shanghai Raas Blood Products last year and China Resources Pharmaceutical’s takeover of Boya Bio-pharmaceutical Group in November 2021.

After surging by their 10 percent daily trading limit at today’s market open in Shenzhen, Pacific Shuanglin’s shares [SHE: 000403] closed 1.1 percent higher at CNY17.14 (USD2.39) each. Tiantan [SHA: 600161] fell 0.6 percent in Shanghai to end at CNY20.09 (USD2.80).

Editor: Tom Litting