(Yicai Global) Jan. 24 -- China's Sinocare Inc., which makes diabetes monitoring devices, has confirmed plans to acquire a unit under the world's largest healthcare firm Johnson & Johnson.

The Hunan-based company is in talks to buy Johnson & Johnson's diabetes care unit, the buyer said in a statement yesterday, adding that it had not yet outlined the finer details of the agreement and nothing was set in stone.

US President Donald Trump signed off on a new tax law late last year, and J&J's latest financial report, released yesterday, shows the company took a USD13.6 billion hit under the legislation. The charge gave the company a fourth quarter loss of USD10.7 billion, but it made a full-year earnings of USD1.3 billion, or USD.047 a share.

Once Sinocare makes a finalized offer, the seller will need to conduct an internal review and gain approval from authorities before the transaction can take place.

Reuters reported a week ago that J&J was evaluating its diabetes care units Lifescan, Animas and Calibra Medical with the possible intention of selling off the assets. A consortium comprising Sinocare and a unit under sovereign wealth fund China Investment Corp. was one of the potential buyers, the report added.