The UK-based company, which was created last year when retailer Boots and wholesale giant Alliance UniChem merged, will acquire a 50 per cent stake in GP Corp for about£38 million.
Alliance Boots unveiled the joint venture at the end of January, but its formation was pending GP Corp shareholder approval and is still conditional upon receiving various government and regulatory approvals.
The deal is expected to be completed in the second half of the year and will extend Alliance Boots' wholesale presence to 15 countries.
The investment in GP Corp will be made through a UK subsidiary, in which Beijing Med-Pharm Corporation (BMP) holds a 20 per cent stake. BMP is a US-listed pharmaceutical marketing and distribution company with existing operations and significant experience in China.
Alliance Boots said it will fund the investment from existing resources.
China is the ninth-largest pharmaceutical market in the world and has experienced rapid economic growth, which has driven even higher growth rates for healthcare expenditure. As a result, China is on track to be the sixth-largest pharmaceutical market by 2010.
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