China National Accord Medicines Corporation Ltd. agreed to acquire Sinopharm Holding Guoda Drug Store Co., Ltd. from Sinopharm Group Co.,Ltd. (SEHK:1099) for CNY 2.9 billion in stock on March 9, 2016. Under the terms of the deal, 39.88 million shares in China National Accord Medicines will be issued as consideration. On June 14, 2016 the deal terms revised, 40.3 million shares will be issued at CNY 35.9 per share. As of September 28, 2016, deal terms were again revised and now 55.0577 million shares will be issued to Sinopharm Group. In a related deal, China National Accord Medicines Corporation Ltd. agreed to acquire 51% stake in Guangdong South Pharmaceutical Foreign Trade Co., Ltd. from China National Pharmaceutical Foreign Trade Corporation in stock and 49% stake in South Pharmaceutical Trade from Fu Yuequn and 10 other individuals in cash on March 9, 2016 and 100% stakes in Foshan Nanhai Pharmaceutical Group Co., Ltd. and Guangdong Dong Fang Uptodate & Special Medicines Co. from Sinopharm Group Co.,Ltd. (SEHK:1099). In a related deal, Shanghai Shyndec Pharmaceutical Co., Ltd. signed an asset transfer agreement to acquire 51% in three pharmaceutical companies, 25% stake in Pharmaceutical Co, and Pingshan base from China National Accord Medicines Corporation Ltd. for CNY 2.5 billion on March 9, 2016.

For the year ended December 31, 2015, Sinopharm Holding GuoDa Drug Store Co., Ltd. reported total assets of CNY 4.64 billion, total common equity of CNY 1.53 billion, revenues of CNY 7.99 billion and net profit of CNY 138.64 million.

The transaction is subject to approval from State-owned Assets Supervision and Administration Commission of the State Council, shareholders of China National Accord Medicines and CSRC. The transaction gained the pre-approval of the State-owned Assets Supervision and Administration Commission of the State Council, Board of Directors and shareholders of Sinopharm Group, Board of Directors and shareholders of China National Accord Medicines. On September 27, 2016 China Securities Regulatory Commission approved the transaction.

China International Capital Corporation Limited acted as financial advisor, Grandall Law Firm acted as legal advisor and PricewaterhouseCoopers Zhong Tian LLP acted as accountant for China National Accord Medicines Corporation Ltd.