Chinese Buyout of Australian Cancer Treatment Developer Approved

A Chinese consortium’s $1.4 billion buyout of Australian liver-cancer treatment developer Sirtex Medical Ltd. has been approved by Australia’s Foreign Investment Review Board, Sirtex said on Tuesday.

The bid, made by a fund jointly owned by Chinese asset management firm CDH Investments and China Grand Pharmaceutical and Healthcare Holdings Ltd., trumped a January bid from the U.S.’ Varian Medical Systems Inc. when it was announced in June.

The fund offered A$33.6 ($24.78) per share, while the American company was willing to pay A$28 per share and declined to submit an equal or superior proposal. Sirtex shares closed up 0.19% at A$31.54 at the end of Wednesday trading.

Sirtex CEO Andrew McLean said that the Chinese offer “represents an exciting opportunity to enhance the growth of the Sirtex business, including through entry into new geographies.”

According to a June acquisition plan released by Sirtex, the transaction is still pending several more regulatory approvals, including from the Committee for Foreign Investment in the United States (CFIUS), which has blocked several attempted Chinese acquisitions of American companies amid trade disputes between the two countries. However CFIUS’ approach seems to have softened recently.

Sirtex develops cancer treatment technology, and its main product is a targeted radioactive treatment for liver cancer. It has a presence in major markets that include the U.S. and Europe, but hasn’t entered China.

The company said in 2017 that it was developing “entry strategies” for the China market, as it represents “attractive, long-term opportunities for the company.”

China accounts for more than half of the world’s liver-cancer cases and deaths, the official English-language China Daily newspaper reported last year, citing Guangzhou’s Sun Yat-sen University Cancer Center.

Contact reporter Coco Feng (renkefeng@caixin.com)