Haleon finalizes full ownership of Chinese JV for $0.2 billion

LONDON - Haleon PLC (LSE/NYSE: HLN), a leading global consumer health company, announced today the agreement to purchase an additional 12% stake in Tianjin TSKF Pharmaceutical (TADAWUL:2070) Co., Ltd. (TSKF), its over-the-counter (OTC) joint venture in China. The acquisition, valued at approximately 1.623 billion yuan (around $0.2 billion), will transition TSKF into a fully owned subsidiary of Haleon.

The transaction, which follows Haleon’s December 2024 acquisition of a 33% equity interest in TSKF, is financed through Haleon’s existing cash reserves and new third-party debt denominated in Renminbi. The completion of the deal is subject to approval from the shareholders of Tianjin Pharmaceutical Da Ren Tang Group Corporation Limited (DRTG), the current 12% stakeholder, as well as customary regulatory clearances. The company anticipates the acquisition to be finalized within the next three months.

TSKF, established in 1984, is a prominent OTC company in China, distributing products under Haleon’s brand, including well-known names such as Fenbid, Contac, and Voltaren. These products cover major therapeutic areas like Pain Relief, Respiratory Health, and Skin Health.

DRTG, the seller of the 12% interest, is a core part of TPG’s pharmaceutical manufacturing operations. It focuses on the production and distribution of both Chinese and Western medicines and is listed on both the Shanghai Stock Exchange (SHSE: 600329) and the Singapore Stock Exchange (SGX: T14).

Haleon’s decision to acquire full ownership of TSKF signifies the company’s commitment to expanding its footprint in the Chinese market. The move is consistent with Haleon’s strategic focus on enhancing its global presence in consumer health and underscores the importance of the Chinese market in the company’s growth plans.

This report is based on a press release statement and aims to provide investors and the public with key information regarding Haleon’s recent business transaction.

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