Grifols S.A. disclosed on Wednesday that it has started conversations with Shanghai RAAS Blood Products in order to make an investment in the company, which is listed on the Shenzhen Stock Exchange. Grifols would invest in Shanghai RAAS by means of the contribution of its fully owned U.S. subsidiary, Grifols Diagnostic Solutions, and its subsidiaries, receiving in exchange Shanghai RAAS newly issued shares.

According to the negotiation, the valuation of 100% shares of Grifols Diagnostic Solutions is approximately $5B. Shanghai RAAS is a "market leader in the field of plasma-derived medicinal products in China", according to Grifols. Shanghai RAAS has a total of 41 plasma collection centers in China with a fractionation capacity of more than 2M liter. The annual plasma collection in 2017 was approximately of 1.1M liters. Both parties have achieved an initial intent to cooperate. The structure of the transaction and the relevant due diligence are still being discussed.