Thursday, March 28, 2024
Advertisement
  1. You Are At:
  2. News
  3. Business
  4. Sun Pharma-Ranbaxy Laboratories deal comes under CCI scanner

Sun Pharma-Ranbaxy Laboratories deal comes under CCI scanner

New Delhi: Putting the multi-billion dollar Sun Pharmaceuticals Industries-Ranbaxy Laboratories deal under close scrutiny, fair trade watchdog CCI has sought more information from them to ascertain whether the deal would skew fair competition in pharma

PTI PTI Updated on: August 08, 2014 23:02 IST
sun pharma ranbaxy laboratories deal comes under cci scanner
sun pharma ranbaxy laboratories deal comes under cci scanner

New Delhi: Putting the multi-billion dollar Sun Pharmaceuticals Industries-Ranbaxy Laboratories deal under close scrutiny, fair trade watchdog CCI has sought more information from them to ascertain whether the deal would skew fair competition in pharma sector.

 
Competition Commission of India (CCI) would take a final view on the deal after receiving details from them and could seek more information if it is not satisfied with the responses.
 
“We have sought more information from the two companies. We will take a final view after getting the required information,” a senior CCI official said.
 
Sun Pharma declined to comment on whether it has submitted the responses to CCI, while queries sent to Ranbaxy Laboratories Ltd did not elicit any response.
 
For CCI, this is one of the biggest M&A deals and also the first major transaction from pharma sector and therefore its decision in this case could have larger implications.
 
In case CCI finds the deal in the current form could hurt fair competition in the domestic pharma market, it can even direct the companies to divest some assets as a pre requisite for approval.
 
The USD 4 billion-worth deal would create the fifth-largest speciality generics company in the world and the largest pharmaceutical company in India.
 
The combined entity would have operations in 65 countries, 47 manufacturing facilities across 5 continents, and a significant platform of speciality and generic products marketed globally.
 
In April, Sun Pharmaceutical Industries announced it would acquire troubled rival Ranbaxy Laboratories in a USD 4-billion deal that includes USD 800 million debt. The transaction has valued Ranbaxy at 2.2 times its USD 1.8 billion revenue for 2013, or about Rs 457 per share.
 
Last month, the deal was approved by leading stock exchanges BSE and NSE. The ‘no-objection' from the two exchanges would allow the two companies to file their scheme of amalgamation with the High Court for further clearance of the deal.
 
Advertisement

Read all the Breaking News Live on indiatvnews.com and Get Latest English News & Updates from Business

Advertisement
Advertisement
Advertisement
Advertisement