Posted by : Varun Doshi
On : 25 March 2015
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Views : 1718
After the recent clearance of Sun Pharma, Ranbaxy merger by Punjab & Haryana High Court last month, the Sun-Ranbaxy deal has got final approval from Competition Commission of India (CCI) & Reserve bank of India (RBI). Emcure Pharmaceuticals Ltd. to seven brands from Ranbaxy for an undisclosed amount
Sun Pharmaceutical Industries Ltd on Tuesday said it has received approval from the Reserve Bank of India (RBI) to issue its shares to non-resident holders of Ranbaxy Laboratories Ltd’s securities and transfer Ranbaxy’s overseas investments to Sun Pharma as a part of its proposed merger.
Sun Pharma on 6 April had agreed to buy Ranbaxy for $3.2 billion in stock in addition to assuming $800 million of debt, aimed at creating India’s largest drug maker and the world’s fifth largest maker of generic, or off-patent drugs.
In its filing to BSE, Sun Pharma said on 23 March the company received the RBI approval for “the issue of equity shares of Sun Pharmaceutical to the non-resident holders of securities of Ranbaxy and transfer of overseas investments held by Ranbaxy in its joint venture and wholly-owned subsidiaries to Sun Pharma, pursuant to the proposed merger of Ranbaxy with Sun Pharmaceutical through a scheme of arrangement”.
On Monday, Sun Pharma had also received approval from the Competition Commission of India (CCI) with respect to the divestment of all the seven products in compliance with the requirement of the CCI order dated 5 December 2014.
Following this approval, Sun Pharma and Ranbaxy have also entered into a definitive agreement with Emcure Pharmaceuticals Ltd for the sale of the seven brands for an undisclosed amount.
These products constitute less than 1% of the combined entity’s revenues in India, Sun Pharma said.
Earlier this month, the Punjab and Haryana high court had approved the merger. In January, the deal had received approval from the US Federal Trade Commission (FTC), which was examining the deal under its antitrust laws. The commission waived a key waiting clause, allowing the two firms to hasten the merger.