China National Accord Medicines Corporation Ltd. (SZSE:000028) agreed to acquire Foshan Nanhai Pharmaceutical Group Co. Ltd from Sinopharm Group Co.,Ltd. (SEHK:1099) for approximately CNY 580 million in stock on March 9, 2016. Under the terms of the deal, 10.7 million shares in China National Accord Medicines will be issued as consideration. As on September 28, 2016, the deal terms revised. As per the new terms, 10.8 million shares will be issued by China National Accord Medicines Corporation Ltd. for approximately CNY 750 million. 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 and 49% stake in South Pharmaceutical Trade from Fu Yuequn and 10 other individuals in cash on March 9, 2016 and 100% stakes in Sinopharm Holding Guoda Drug Store and Guangdong Dong Fang Uptodate & Special Medicines Co. from Sinopharm Group Co.,Ltd. (SEHK:1099). Also 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, Foshan Nanhai Pharmaceutical Group reported total assets of CNY 828.9 million, revcenues of CNY 1.7 billion, net income of CNY 46.5 million and net assets of CNY 289.9 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 of China National Accord Medicines. On September 27, 2016, CSRC approved the deal. China International Capital Corporation Limited acted as financial advisor for China National Accord Medicines. Grandall Law Firm acted as legal advisor, PricewaterhouseCoopers Zhong Tian LLP acted as accountant for China National Accord Medicines Corporation Ltd.

China National Accord Medicines Corporation Ltd. (SZSE:000028) completed the acquisition of Foshan Nanhai Pharmaceutical Group Co. Ltd from Sinopharm Group Co.,Ltd. (SEHK:1099) on December 13, 2016.