China's Haier Biomedical to Merge With RAAS to Upgrade Blood Products Chain(Yicai) Dec. 23 -- Chinese electronics conglomerate Haier Group plans to merge Haier Biomedical with RAAS Blood Products, a major producer of plasma-derived products, to create a leading biotechnology company.
Haier Biomedical, a manufacturer of laboratory refrigerators and freezers, will issue shares to all RAAS shareholders and raise additional funds for future business development, the Qingdao-based company announced yesterday.
Through this merger, Haier Biomedical aims to optimize its blood products industrial portfolio while capitalizing on synergies with RAAS to create a biotech company with sustainable growth potential, it added.
Shanghai-based RAAS, one of China's largest manufacturers of blood products used in treating blood disorders and autoimmune diseases, came under Haier's control in June when the group acquired around 20 percent of its equity from Spanish plasma-derived products manufacturer Grifols for CNY12.5 billion (USD1.7 billion).
At the time, Haier pledged to support RAAS in building new plasma collection facilities and expanding production capacity through investments in digital and intelligent equipment. The group also committed to helping RAAS broaden its research and development initiatives to new areas.
In an unconventional move, Haier Biomedical is set to take over a larger company. In the first three quarters of this year, the lab technology firm recorded a 13 percent decline in net profit to CNY309 million (USD42.3 million) from a year earlier with a 2 percent drop in revenue to CNY1.8 billion (USD246.7 million), according to its latest financial report.
In contrast, RAAS logged a 3 percent increase in net profit to CNY1.8 billion, while revenue rose 6 percent to CNY6.3 billion.
Trading in shares of both Haier Biomedical [SHA: 688139] and RAAS [SHE: 002252] was suspended following the merger announcement. On the last trading day, Haier Biomedical's market capitalization stood at CNY11.2 billion (USD1.5 billion), while RAAS was valued at CNY47.9 billion.
Editors: Dou Shicong, Emmi Laine
