Baxter International has secured conditional approval from the Chinese Ministry of Commerce for its proposed $4bn acquisition deal of Swedish dialysis equipment manufacturer Gambro AB.
Baxter International, however, has to sell its international continuous renal replacement therapy unit and end an outsourcing production deal with Japan's Nipro by 31 March 2016, as part of the conditions laid out by the Ministry of Commerce, reports Reuters.
Last month, Baxter International received EU regulatory approval after it promised to sell the continuous renal replacement therapy (CRRT) business, including supply deals and intellectual property rights.
The CRRT division contributes to around 2% of Baxter's overall renal product sales.
With this deal, which was signed in December 2012, Baxter International expects to be the second-largest manufacturer in the dialysis segment, which is likely to expand due to growing cases of obesity and diabetes.
The acquisition would boost Baxter International's dialysis product portfolio and complement its international home dialysis offerings, and provide a better position in catering to the growing demand in this segment.
Gambro AB is currently owned jointly by Swedish private equity firms EQT Partners and Investor.
US-based DaVita Healthcare Partners and Germany's Fresenius Medical Care are major players in the dialysis market where Baxter International and Gambro AB are currently competing.
Baxter International, through its subsidiaries, develops manufactures and markets for hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions.
Gambro AB is a global medical technology company focused on developing, manufacturing and supplying dialysis products and therapies for patients with acute or chronic kidney disease.