China's Fosun to set up technology incubator in Israel

The move follows the acquisition of Alma Lasers by Fosun Pharmaceutical for $240 million in April.

Fosun International Ltd. (HKSE: 656) will establish a technology incubator in Israel, Fosun International chairman Guo Guangchang told Prime Minister Benjamin Netanyahu. The move follows the acquisition of Alma Lasers Ltd. by Fosum International unit Shanghai Fosun Pharmaceutical Group Co. Ltd. (SSE: 600196; HKSE: 02196) for $240 million in April.

"The Fosun Group chairman updated the Prime Minister on the establishment of a venture capital fund in Israel to locate investments for the group in Israeli start-ups," said the Prime Minister's Office in a statement. "The group intends to increase its commercial presence in the form of a technological incubator to locate and promote Israeli technologies, as well as find additional business opportunities for cooperation with Israeli companies and distribute their products in the Chinese and international markets."

When Fosun Pharma announced its acquisition of Alma Lasers, it said that it planned to utilize Israeli capabilities to find additional technologies, like other large foreign companies which make their first acquisition of an Israeli company. Fosun Pharma said it would establish Alma Lasers as a management platform for the R&D, manufacturing and sales of high-end medical devices, providing an internationalized development path for the company.

The precise definition of the activity that Fosun, one of China's largest conglomerates, will establish in Israel is not yet clear. The company intends to strengthen its presence in Israel, through investing in a range of industries, not just medical equipment (as in the case of the acquisition of Alma Lasers), and in collaborations with a focus on China and elsewhere in the Far East.

Published by Globes [online], Israel business news - www.globes-online.com - on June 12, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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