Chinese drug company Truking Technology is extending its reach into the European market with the biggest merger in the global pharmaceutical industry: a 150-million-euro (164 million US dollars) deal to buy a majority stake in German pharma firm Romaco.

The merger will cover 75 percent of Romaco, with Chinese investors expected to buy up the rest of the shares over the next three years. 

Focused on technology and equipment production in the pharmaceutical industry, Truking Technology - with 154 million euros (169 million US dollars) of sales in 2016 -now aims to expand its territory. And Romaco is an ideal fit. 

“The product portfolio and the regional strengths of both companies complement each other very well and our cooperation is the win-win situation,” said Truking’s  chairman, Tang Yue.

“Romaco is the leading maker for pharmaceutical solids, while we are the largest supplier in pharmaceutical liquids in China. There will also be very attractive growth opportunities for Romaco in China.”

Romaco provides packaging and processing technologies for the drug industry. The firm entered the Chinese market in 1997, and has opened five centers in the country. Now it says it would remain committed to further developing its business here.

For Truking Technology, the merger is a stepping stone to a higher-ranking club. It now has access to major drug companies, and a broad sales network reaching over 180 markets.

Analysts say as China is gradually transforming towards a pharmaceutical producer and exporter, reforms require upgrading the industry's low-end production and racking up more market shares.