While the first MoU, signed on Feb 6, 2005, broadly provided for a joint venture relationship between the two companies, the revised MoU will facilitate Matrix to acquire 60 per cent of the ownership interest in MCHEM Pharma Group and its four other associate companies. The consideration for the acquisition of the ownership interest will either be in cash or in kind or a combination of both, subject to the detailed due diligence and all the requisite approvals.
The decision to enter into China is part of the overall long-term strategy of Matrix Laboratories to become an end-to-end player and thus integrate both forward and backward. In line with this strategy, Matrix acquired a finished dosage facility in Nasik in January 2005. Now, this joint venture is an initiative of Matrix Laboratories to backward integrate and further strengthen the supply chain, a press release said.
