Mitsubishi Chemical has chosen Bain as its preferred choice for the pharmaceutical division, sources told Reuters.

TOKYO/HONG KONG (Reuters) – Japan’s Mitsubishi Chemical Group has selected U.S. investment fund Bain Capital for its pharmaceutical arm Tanabe Mitsubishi Pharma in a deal valued at more than $3 billion. Condition said.

The two sides are in final negotiations, said a person who spoke on condition of anonymity because the information is confidential.

It was reported on Monday that the company may sell Tanabe Mitsubishi’s pharmaceutical unit to Bain Capital for more than $500 billion (over $3.2 billion).

Mitsubishi Chemical said in a statement on Tuesday that the Nikkei report had not been disclosed by the company.

“We are continuously evaluating the group’s suitable business portfolio for all our businesses, including the pharma business, and will introduce portfolio improvements including all options,” the company said.

Bain declined to comment.

Global private equity firms Blackstone (NYSE: ) and Bain Capital were among the final bidders for Mitsubishi Tanabe Pharma, which could be valued between $3 billion and $3.5 billion, Reuters reported in December.

($1 = 156.3500 yen)