Fund buys pharmaceutical firm

H Fund, a private equity fund led by Legend Holdings and Goldman Sachs, has acquired the sixth-largest Chinese pharmaceutical company, an indication of intensifying industry consolidation in the world's most populous country.

The government of Shijiazhuang city in Hebei Province said on its website yesterday that it had sold its wholly owned Shijiazhuang Pharmaceutical Group (SPG) to a group of investors led by Legend Holdings, parent of Lenovo Group, the largest Chinese computer maker.

It was the second pharmaceutical investment by Legend Holdings and the third-largest pharmaceutical takeover in China in the past year.