Tsumura Eyeing Acquisition of Yomeishu Medical Liqueur Biz

Tokyo, Feb. 3 (Jiji Press)–Tsumura & Co., a major Japanese maker of Chinese-style herbal medicines, is considering acquiring Yomeishu Seizo Co.’s mainline Yakuyo Yomeishu medical liqueur business, it was learned Tuesday. As both Tsumura and Yomeishu Seizo use crude drugs for their products, the possible deal would help the Japanese companies improve operational efficiency partly through joint procurement of ingredients, informed sources said. The two companies are apparently discussing details, including the acquisition price, according to the sources. The possible business sale comes as Yomeishu Seizo is considering going private at a time when sales of Yakuyo Yomeishu continue falling, the sources said. On Tuesday, Yomeishu Seizo, which is listed on the Tokyo Stock Exchange’s top-tier Prime section, said that it is in talks with Japanese investment firm Yuzawa, its top shareholder, on specific ways to carry out the plan to go private, and is considering a business sale at the same time. But it added that nothing has been decided at this point. Yomeishu Seizo previously gave the preferential negotiating right to U.S. investment fund KKR over share acquisition related to the planned delisting. But the company canceled the right later in the face of opposition from the largest shareholder. END [Copyright The Jiji Press, Ltd.]