One of China’s Biggest Blood-Products Firms Looks to Go Global

A leading Chinese blood products company is buying sector peers in the U.S. and Germany for around $5.5 billion as it looks to challenge established global giants.

Shanghai RAAS Blood Products Co. Ltd. said in a statement (link in Chinese) Thursday that it will acquire Grifols Diagnostic Solutions Inc. (GDS), a U.S. subsidiary of Spanish blood-product giant Grifols valued at around $5 billion, in exchange for new RAAS shares. The statement also said Grifols will become a RAAS stakeholder and participate in setting the business’s strategic direction.

Since its founding in 1988, Shanghai RAAS has become China’s leading producer and seller of clinical blood products — which are derived from human blood — including human albumin, which is used to treat those who have blood deficiencies, such as some cancer patients.

RAAS said that the acquisition will help GDS, which produces reagents and equipment used for blood transfusions, make up for its lack of testing technology and enhance its reputation.

RAAS said it sees the acquisition as an opportunity to “increase its market share and become a world-level blood products giant,” as GDS’ main customers are U.S. and multinational companies.

RAAS also said in the statement that it will buy Tiancheng Germany, which holds about 90% of the shares of Germany-based blood products company Biotest AG, for 589 million euros ($672 million) to expand its market scope.

In February, RAAS said it planned to purchase Tiancheng International, to control Biotest and blood product unit until BPL, but the latest statement said that U.S. regulators had dragged their feet on approving the deal, so RAAS decided to abandon it.

The company said both deals are still awaiting regulatory approval.

Contact reporter Tang Ziyi (ziyitang@caixin.com)