SPIMACO's Acquisition of Osmopharm Hits Regulatory Hurdle
Deal News | Dec 05, 2024 | Zawya
Saudi Pharmaceutical Industries and Medical Appliances Corporation (SPIMACO) disclosed that their initiative to acquire a significant stake in Swiss pharmaceutical entity Osmopharm has encountered difficulties. This transaction, valued at SAR 16.1 million and aimed at obtaining a 68% stake in Osmopharm, was set to be concluded through a combination of share swap and cash payment. However, SIGMA Pharmaceutical Industries, one of the stakeholders, terminated the deal due to the failure to secure necessary regulatory approvals by the specified deadline. The transaction involved exchanging shares of SPIMACO Misr, an Egyptian affiliate, and additional cash; it required clearances from Saudi and Egyptian authorities. Due to the lapse in securing these regulatory endorsements, the contractual agreement was disrupted, reflecting on the complexities involved in cross-border acquisition endeavors.
Sectors
- Pharmaceuticals
- Healthcare
Geography
- Saudi Arabia – SPIMACO, based in Saudi Arabia, is a key participant in the transaction.
- Switzerland – Osmopharm, the target company in the acquisition deal, is located in Switzerland.
- Egypt – SPIMACO Misr, which was to be partly divested in the deal, is based in Egypt, making the country significant to the transaction.
Industry
- Pharmaceuticals – The article involves major companies in the pharmaceutical sector, discussing acquisition plans and divestments between SPIMACO and Osmopharm.
- Healthcare – The healthcare industry is relevant as the companies involved provide medical appliances and products, which is a key part of healthcare services.
Financials
- SAR 16.1 million ($4.3 million) – The total value of the planned acquisition deal involving SPIMACO and Osmopharm.
- CHF 800,000 – The cash consideration component specified in the acquisition agreement for Osmopharm.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| SPIMACO | Bidding Company | Company | Saudi Pharmaceutical Industries and Medical Appliances Corporation, a major Saudi Arabian pharmaceutical company involved in the acquisition. |
| Osmopharm | Target Company | Company | A Swiss pharmaceutical company that was the target of the acquisition. |
| Sigma Pharmaceuticals Industries | Selling Company | Company | A stakeholder of Osmopharm involved in the terminated transaction. |
| Bruno Scapinelli | Shareholder | Person | Shareholder of Osmopharm involved in the transaction. |
| Ahmed Abd El Monem Aly Habib | Shareholder | Person | Shareholder of Osmopharm involved in the transaction. |