Sun Pharmaceutical Industries Ltd. and Ranbaxy Laboratories Ltd announced on 9th December that they have received the order of the Competition Commission of India (“CCI”) dated December 5, 2014(“Order”) 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 6th May 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 1% of the combined entity's revenues in India.
Dilip Shanghvi, Managing Director of 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, CEO & Managing Director of 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.
