China Resources Sanjiu is to buy 27.56 percent of Kunming Pharmaceutical Group held by Holley Pharmaceutical Group for 2.9 billion yuan (US$430 million).

Sanjiu is a state-owned pharmaceutical company, specializing in traditional Chinese medicine (TCM). Kunming Pharmaceutical Group is a natural botanical enterprise covering the entire pharmaceutical chain. In 2021, its operating revenue was 8.3 billion yuan.

After the merger, Sanjiu will hold 28 percent of Kunming Pharmaceutical, which will become a holding subsidiary of Sanjiu. This is the largest M&A transaction in the TCM industry since the A-share TCM market opened this year.