Categories: Regulatory Norms

Sun-Ranbaxy gets FIPB okay but competition panel nod still eludes

CCI’s decision likely by December 5

New Delhi, December , 2014 – The Sun Pharmaceuticals-Ranbaxy deal has got the Foreign Investment Promotion Board (FIPB) nod, but the Competition Commission of India is yet to give its view on the merger.

This mega pharma agreement is the first merger deal to face public scrutiny in India.

On Monday, Sun Pharma informed the Bombay Stock Exchange (BSE) that it has got FIPB approval for issuing equity shares of the company to the non-resident investors of Ranbaxy Laboratories.

However, the $4-billion deal is still awaiting a nod from the CCI, which was expected to decide on the matter by the end of November.

Reportedly, the CCI has asked both the companies — Ranbaxy and Sun Pharma — to divest some brands which, when merged, would create a monopoly in the market. The CCI is expected to announce its decision on the matter by December 5.

While CCI Chairman Ashok Chawla could not be reached through calls and messages, Ranbaxy refused to comment on the matter.

According to the terms inked between Ranbaxy and Sun Pharmaceuticals in April, each Ranbaxy shareholder will get 0.8 shares of Sun Pharmaceuticals for every share of Ranbaxy.

The deal, merging Daiichi Sankyo-owned Ranbaxy Labs with Sun Pharma, is likely to create the fifth-largest pharmaceutical company in the world and the largest in India.

In September, the CCI had called for public comments on the deal and said in a statement, “The Commission formed a prima facie opinion that the combination is likely to have an appreciable adverse effect on competition.” Business Line

The Pharma Times News Bureau

Recent Posts

8 Ways Insomnia Affects Skin Health & How To Avoid It

By Dr. Priyanka Kuri, Consultant - Dermatology, Aster Whitefield Hospital, Bengaluru Insomnia, the persistent inability…

1 day ago

Breaking New Ground in Migraine Care: A Landmark Session on Diagnosis and Treatment

Illuminating Latest Advances in Migraine Diagnosis and Treatment New Delhi, December 21, 2024: In a…

1 day ago

Healthcare Startups to Watch Out for in 2025

New Delhi, December 20, 2024: The healthcare sector is undergoing a transformation fueled by technological…

2 days ago

DKMS’s First Global Impact Report of 2023 Serves as New Ray of Hope for Blood Cancer Patients Worldwide

National, December 20, 2024: DKMS just published its first Global Impact Report that outlines the organization's…

2 days ago

Sterling Biotech to start world’s first precision fermentation-based dairy protein factory in Gujarat

Ahmedabad, December 19, 2024: Sterling Biotech Limited, a joint venture between Perfect Day and Zydus, has…

3 days ago

Pioneers in Senior Care, Antara, Partners with Leading Diagnostics Player Dr. Lal PathLabs to Strengthen its Geriatric Care Services

New Delhi, December 19, 2024: Antara Senior Care, an integrated eco-system provider for lifestyle and…

3 days ago