(Yicai) July 24 -- Shares in Shanghai Titan Scientific surged as much as 6.9 percent today after the Chinese chemical reagent and specialty chemicals producer said it plans to acquire its British counterpart Apollo Scientific for GBP5.7 million (USD7.8 million) to broaden its product lineup and expand its global footprint.

Titan’s share price [SHA:688133] closed up 4.3 percent at CNY26.95 (USD3.80). Earlier in the day it hit CNY27.60.

Titan has signed a share acquisition agreement with Apollo’s current owner, Central Glass, which is listed on the Tokyo Stock Exchange, the Shanghai-based company said yesterday. Once the deal goes through, Apollo will become a wholly owned subsidiary of Titan.

The acquisition will add a range of innovative chemical products to Titan’s product portfolio and provide the company with a new overseas production and operations base, it said. This will help expand the firm’s international sales channels and enhance its global layout.

Apollo, which is a specialized chemical supplier with a strong brand presence in the UK and across Europe, has been running at a loss for the past few years. The Manchester-based company posted a net loss of CNY6.9 million (USD964,700) in 2023 and CNY5.5 million (USD769,000) in 2024. Losses are expected to narrow further this year.

Apollo counts major global pharmaceutical firms, biotech companies, academic research institutions and chemical manufacturers among its clients. Its products include chemical intermediates, fluorides and life science reagents, with a catalogue of over 100,000 different compounds. It also offers custom synthesis services tailored to customer needs, it said.

The deal is still subject to regulatory approvals in China and abroad, as well as clearance from stock exchanges, Titan said.

Editor: Kim Taylor