Shanghai Fosun to Buy Smaller Stake in Indian Drugmaker to Avoid Government Veto

Shanghai Fosun Pharmaceutical Group Co. scaled back its proposed purchase of control in Indian drugmaker Gland Pharma Ltd. to a level that would allow it to avoid a government review of the biggest Chinese acquisition in India.

Fosun Pharma, backed by Chinese billionaire Guo Guangchang, will now buy a 74 percent stake for $1.1 billion, according to a statement Sunday. It had originally sought to buy an 86 percent stake in the closely-held Indian drugmaker from an investor group including KKR & Co. However, a stake that size must be signed off by the Cabinet Committee on Economic Affairs, which was poised to reject the move, Bloomberg reported Aug. 1, citing people familiar.