Mitsubishi Tanabe Pharma to be acquired by Bain Capital

Japan’s Mitsubishi Chemical Group (TYO: 4188) has resolved, at a meeting of the board of directors held today, to transfer its consolidated subsidiary, Mitsubishi Tanabe Pharma (MTPC), which engages in the manufacturing and sales of pharmaceutical products, to K.K. BCJ-94, a special purpose company indirectly owned by Bain Capital for around 510 billion yen ($3.36 billion).

Assuming completion, this would be the largest-ever private equity deal in Japan’s healthcare sector. Bain is buying the Tanabe business in the hope that it can tap into its own connections to other global pharmaceutical groups to find and license new or promising drugs to bring to Japan, particularly new drugs for treating rare diseases.

Mitsubishi Chemical’s shares fell 4.2% to 756 yen on the news.