New Delhi: The $4 billion merger between Sun Pharma and Ranbaxy on Monday cleared its final hurdle after they signalled the acceptance of Competition Commission of India (CCI) order to diversify products in which the new entity will have a monopoly.
In its order, the Commission had approved the proposed merger between Sun Pharma and Ranbaxy, subject the two companies divest seven products to address anti-competitive concerns.
“Sun Pharma and Ranbaxy are looking forward to progressing towards the completion of the transaction and will comply with the conditions laid down by the CCI within the specified time,” said Ranbaxy.
It further said, “One of the preconditions of the order is that parties procure the divestment of seven products. These products constitute less than one per cent of the combined entity’s revenues in India.”
Foreign Investment Promotion Board (FIPB) has already given a green signal to the deal which will create India’s largest and world’s fifth biggest drug-maker.
“The order of the CCI approving the deal is an important milestone for the transaction. It revalidates our view that the Sun Pharma and Ranbaxy businesses complement each other with limited product overlap, and will offer a comprehensive product basket to enable future growth,”said Dilip Shanghvi, managing director of Sun Pharma.
