Charles River takeover of WuXi collapses

Charles River bows to shareholder pressure and abandons its $1.6 billion takeover of WuXi PharmaTech, signalling that Western buyers may find it difficult to garner the support they need to strike deals in Asia's fast-growing economies.

US drug company Charles River Laboratories International announced on Friday that it was aborting a $1.6 billion takeover of Chinese drug research and development outsourcing company Wuxi PharmaTech.

Charles River is a provider of research models and associated services of preclinical drug development. WuXi is a pharmaceutical, biotechnology and medical device research and development outsourcing company, with operations in China and the United States. Charles River and WuXi announced the takeover in April. The deal has been withdrawn only days ahead of a meeting at which Charles River shareholders were to vote on the acquisition.

Charles River chief executive James Foster said in a statement that he continues...

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