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Dongwon's takeover bid for vaccine maker falls through

March 22, 2023 - 21:05 By Yonhap


South Korean seafood company Dongwon Industries Co.'s bid to acquire a local vaccine maker fell through due to unspecified reasons, according to company officials said Thursday.

Boryung Biopharma Co. has withdrawn the exclusive right to due diligence it had given to Dongwon Industries, and the memorandum of understanding they signed last month has been nullified, according to company officials and a Dongwon filing.

Dongwon said in the filing "the preferred due diligence rights have been terminated upon mutual agreement and we made the final decision not to proceed with the acquisition."

An official from Boryung Biopharma cited "disagreement over various matters," without giving further details.

Boryung Biopharma said it plans to put the deal up for bidding.

Dongwon said in February it received preferred negotiation rights from Boryung Partners, the controlling stakeholder of Boryung Biopharma, for the potential acquisition of the vaccine maker.

Boryung Biopharma is known for developing the first oral typhoid vaccine in South Korea.

Dongwon Industries, whose signature products include canned tuna and other processed seafood, has recently engaged in aggressive merger and acquisition deals in a bid to expand its business to other areas.

Dongwon is the sole bidder in the acquisition of McDonald's Korea and is currently negotiating the price. (Yonhap)