Sun Pharma Announces Closure of Merger Deal With Ranbaxy

Sun Pharmaceutical Industries Ltd has completed the $3.2 billion acquisition of Ranbaxy Laboratories Ltd on Wednesday. This merger will make Sun Pharma the largest pharmaceutical company in India with a market share of 9.2% and sales of $1.1 billion, as well as the world's fifth largest maker of generic drugs after Teva, Sandoz, Activas and Mylan.

Dilip Shanghvi, Sun Pharma managing director, said, "The merger has created a combined entity which has much more managerial capability. We will look to retain and nurture the talent. The company would invest more than $300 million (over Rs.1,800 crore) in research and development in 2015, which would be 6-7% of the combined revenue."

Following the merger, Ranbaxy will be delisted from Indian stock exchanges, and each Ranbaxy shareholder will receive 0.8 share of Sun Pharma for each share of Ranbaxy.

The Punjab and Haryana High Court approved the merger earlier this month, while the US Federal Trade Commission (FTC) had approved the merger in January 2015. On March 23, the Competition Commission of India (CCI) had approved the Sun Pharmaceutical and Ranbaxy sale of seven brands to Emcure Pharma to comply with the conditional nod for their merger.

Source: Medindia