Competition panel to decide on Sun-Ranbaxy deal by month-end
Mumbai: The Competition Commission is likely to take the final decision in the USD 4 billion Sun Pharma-Ranbaxy deal by the end of this month, fair trade watchdog's chairman Ashok Chawla has said.
This big ticket deal in the pharma space is also the first M&A transaction to have gone through public scrutiny amid concerns of adverse impact on fair competition in the market.
“We had asked them (the two companies) to come up with some remedial measures which they have submitted and we are studying the same. A final decision on the deal will be taken by the end of this month,” Chawla said today.
He was speaking to reporters after delivering the keynote address at an event organised here by the Public Affairs Forum of India along with law firm J Sagar Associates.
The Sun Pharma-Ranbaxy transaction, which would create the country's largest pharmaceutical company, had come under close scrutiny of CCI after it was found prima—facie that the “combination is likely to have an appreciable adverse effect on competition.”
The combined entity would have operations in 65 countries, 47 manufacturing facilities across 5 continents, and a significant platform of speciality and generic products marketed globally. The deal, announced in April this year, is also the first one where the Commission sought public comments.
The public scrutiny of the deal, which would create the fifth largest speciality generics company in the world, ended on September 24. Major issues being examined by CCI on the deal are with respect to the molecules market.
The public consultation process was launched in order to determine whether the combination has or is likely to have an appreciable adverse effect on competition in the relevant market in India.
“The Commission formed a prima facie opinion that the combination is likely to have an appreciable adverse effect on competition and accordingly directed Sun Pharma and Ranbaxy (parties) to publish details of the combination within ten working days for bringing the combination to the knowledge or information of the public and persons affected or likely to be affected by such combination,” it had said.
Prior to that, CCI had asked the two pharma majors to make public specific details of their proposed merger.