HYDERABAD: The Competition Commission of India (CCI) on Thursday invited comments from all stakeholders, including general public, on the $4 billion Sun-Ranbaxy merger.
This is the first time ever that comments from general public were being sought in a merger and acquisition deal in India.
The public consultation is aimed at determining whether the combination (Sun-Ranbaxy) has or is likely to have an appreciable adverse effect on competition in the relevant market in India.
It may be noted that on August 27, Competition Commission of India had asked both the pharma companies to make public specific details of the proposed merger.
These comments need to be submitted to the regulator within 15 days, along with supporting documents on how the merger can be adversely impact the concerned person or entity. The regulator, however, said it will not consider unsubstantiated objections.
On August 29, CCI chairman Ashok Chawla said the major issue in the deal was whether the combination would result in high market concentration of certain molecules. “The major issues obviously are that in many of the molecules, the basic building block in the pharmaceutical industry, whether in some of those molecules there is high market concentration which will emerge as a result (of the consolidation). That is the matter,” he said.
In April, Sun Pharmaceutical Industries, announced it would acquire troubled rival Ranbaxy Laboratories in a $4 billion deal that includes $800 million debt.
The deal has got ‘no-objection’ from the two exchanges, Bombay Stock Exchange and National Stock Exchange, where the shares of two firms are listed, allowing them to file their scheme of amalgamation with the High Court for further clearance of the deal.
The $4-billion deal would create the 5th largest speciality generics company in the world and the largest pharmaceutical company in India.
The combined entity would have operations in 65 countries, 47 manufacturing facilities across 5 continents, and a significant platform of specialty and generic products marketed globally.