Sun Pharma and Ranbaxy had filed the notice with the CCI on May 6, 2014 and sought its approval with respect to the deal
Sun Pharmaceutical Industries and Ranbaxy Laboratories have received the order of the Competition Commission of India (CCI) dated December 5, 2014 by which CCI has approved the acquisition of Ranbaxy by Sun Pharma, subject to compliance with certain conditions.
Sun Pharma and Ranbaxy had filed the notice with the CCI on May 6, 2014 and sought its approval with respect to the deal. Over the past few months, the CCI has sought information and detailed clarifications for the purposes of making its assessment.
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.
Dilip Shanghvi, Managing Director, Sun Pharma said, “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. We are pleased with the open and transparent manner in which the matter has progressed.”
Arun Sawhney, Chief Executive Officer and Managing Director, Ranbaxy said, “The approval by CCI is a significant step forward. We are confident that post closure, the combined entity will enable sustainable long-term growth and deliver immense value for all stakeholders.”
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.
EP News Bureau– Mumbai