Government Considering Merger

The Indonesian Ministry of State Enterprises is assessing whether to merge two pharmaceutical companies in which it has controlling stakes. By combining the activities of Kimia Farma and Bio Farma, operational efficiencies will be realised and costs controlled, which is increasingly important in a tough operating environment. While BMI understands the rationale behind the strategy, very few synergies exist between the two firms, which would limit potential gains.

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