Chinese conglomerate Fosun’s acquisition of Indian pharmaceutical firm Gland Pharma is struggling to gain the requisite government approvals. The proposed $1.3 billion deal (which would be China’s largest in India to date) has already been approved by the Competition Commission of India, as well as the country’s Foreign Investment Promotion Board, but has failed to garner the necessary support of the Cabinet Committee on Economic Affairs.
The hold-up comes amid an ongoing stand-off between Indian and Chinese troops on the Doklam Plateau in the Himalayas and is likely influenced by a security-minded review of the broader implications of permitting these sorts of deals.
The stall comes as awareness of the national security implications of Chinese investment grows internationally, with HNA Group’s bid for the International Currency Exchange in London also triggering concerns within the British government and the purchase of Skybridge not yet receiving the go-ahead from CFIUS. A further impediment to these deals is the growing pressure on acquisitive private investors, such as Fosun and HNA, from the Chinese government, following the July meeting of the Chinese Communist Party’s influential Central Financial Work Commission.