Sun-Ranbaxy merger gets CCI nod... but with riders
9 Dec 2014 12:17 AM GMT
The fair trade regulator's approval comes after the first ever public scrutiny carried out by it for a merger, which was announced in April and would create India's largest and world's fifth biggest drug-maker. In an order released on Monday, the Competition Commission of India (CCI) said that it "approves the proposed combination ... subject to the parties carrying out the modification to the proposed combination".
CCI has directed Sun Pharma to divest all products containing 'Tamsulosin + Tolterodine' which are at present marketed and supplied under the Tamlet brand name.
Similarly, Ranbaxy would be required to divest all products containing Leuprorelin which are marketed and supplied under the Eligard brand name, among others. In all, six products will have to be divested by Ranbaxy and one by Sun.
According to the fair trade watchdog, the modification to the proposed deal aims "to maintain the existing level of competition in the relevant markets in India". This would need to be done through creation of a viable, effective, independent and long term competitor in the relevant markets pertaining to the divestment products, CCI said in the order.
CCI has directed Sun Pharma to divest all products containing 'Tamsulosin + Tolterodine' which are at present marketed and supplied under the Tamlet brand name.
Similarly, Ranbaxy would be required to divest all products containing Leuprorelin which are marketed and supplied under the Eligard brand name, among others. In all, six products will have to be divested by Ranbaxy and one by Sun.
According to the fair trade watchdog, the modification to the proposed deal aims "to maintain the existing level of competition in the relevant markets in India". This would need to be done through creation of a viable, effective, independent and long term competitor in the relevant markets pertaining to the divestment products, CCI said in the order.
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