The High Court of Punjab and Haryana has orally approved the merger of Sun Pharmaceutical Industries and Ranbaxy Laboratories, as per a stock market disclosure. This takes the two firms closer to the closure of the deal which was announced almost a year ago.
Sun Pharma said a certified true copy of the court order is awaited.
Recently, the US Federal Trade Commission (FTC) approved the proposed $4-billion buyout of Ranbaxy by Sun Pharma. It completed its review of the deal and has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
FTC accepted a proposed consent agreement following which Sun Pharma and Ranbaxy have agreed to divest Ranbaxy’s interests in generic minocycline tablets and capsules to an external third party.
Generic minocycline tablets are used to treat an array of bacterial infections, including pneumonia, acne and urinary tract infections.
In December, the Indian fair trade regulator Competition Commission of India (CCI) had approved the mega deal with certain riders. As per the conditions, CCI directed both the companies to divest seven products as it found that the deal could hit competition in the Indian market.
Last April, Sun Pharma announced that it would take control on Ranbaxy in an all-stock transaction with a total equity value of $3.2 billion, along with debt of $800 million, taking the overall deal value to $4 billion.
This would be the biggest domestic M&A deal ever and by far the top pharma deal in local currency terms. The deal, once completed, would create India’s largest and world’s fifth-biggest drug maker with operations across 65 countries, 47 manufacturing facilities in five continents and a global portfolio of specialty and generic products.
(Edited by Joby Puthuparampil Johnson)