U.S. private equity firm Bain Capital has bought Mitsubishi Tanabe Pharma in a deal worth 510 billion yen ($3.4 billion), saying it was encouraged by prospects of regulatory change for Japan's drug industry.

Japan's Mitsubishi Chemical said on Friday it will sell pharmaceutical subsidiary Tanabe Mitsubishi Pharma to U.S. private equity firm Bain Capital in a deal worth 510 billion yen ($3.36 billion) as it seeks to streamline its portfolio.

Following rumblings of a private equity bidding war late last year, Bain Capital has emer | Bain Capital is laying out 510 billion Japanese yen ($3.3 billion) to acquire Mitsubishi Tanabe Pharma in a carve-out transaction from its parent Mitsubishi Chemical Group.