Mitsubishi Chemical has selected Bain as its preferred bidder for its pharma unit, sources said.

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.

Nikkei reported on Monday that the company may sell Tanabe’s Mitsubishi Pharma unit to Bain Capital for more than ¥500 billion ($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.

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

($1 = 156.3500 yen)

(Reporting by Kaori Kaneko and Makiko Yamazaki in Tokyo and Kane Wu in Hong Kong; Editing by Toby Chopra and Sri Navaratnam)