Mitsubishi Chemical Group Corp. agreed to sell its pharmaceutical unit to Bain Capital for yen 510 billion (US$3.4 billion), marking one of Japan’s largest healthcare deals this year.
The sale of Mitsubishi Tanabe Pharma Corp. comes as the Tokyo-based chemical maker shifts focus to its core business. The transaction, expected to close in mid-2025, requires shareholder and regulatory approvals.
The deal reflects growing pressure on Japanese conglomerates to streamline operations. While Mitsubishi Tanabe contributed significantly to group profits with yen 56.4 billion ($377 million) in net income last fiscal year, its parent cited challenges in drug development and rising costs.
Mitsubishi Chemical plans to use proceeds to reduce debt and enhance shareholder returns. The company will also reinvest in its chemicals business, focusing on five strategic areas outlined in its Vision 35 plan.
The transaction includes Mitsubishi Tanabe’s subsidiaries – Canadian vaccine developer Medicago Inc., currently in liquidation, and two dormant US-based companies. Bain Capital’s purchase will be made through a special purpose company, K.K. BCJ-94.
