Japan's Mitsubishi Chemical Group has picked U.S. investment fund Bain Capital as the preferred bidder for its pharmaceutical subsidiary, Tanabe Mitsubishi Pharma, in a deal that could value it at over $3 billion,

Bain Capital is in talks to acquire Mitsubishi Chemical Group’s pharmaceutical business in a potential multibillion-dollar deal, a person familiar with the matter said.

Mitsubishi Chemical Group has given the U.S. investment fund Bain Capital the right of first refusal to negotiate the purchase of its pharmaceutical subsidiary, Tanabe Mitsubishi Pharma, the Nikkei reported on Monday.