Shares in Sun Pharma and Ranbaxy extended gains after
the Competition Commission of India (CCI) cleared the proposed merger of the
above mentioned companies with some riders, which will result in a combined
entity making it the fifth-largest generic drug maker globally.
Sun Pharma gained over 3 per cent to a day high of
Rs 854.45 while Ranbaxy gained as high as 4.2 per cent to a day high of Rs
651.7.
The antitrust regulator, CCI has asked both Sun
pharma and Ranbaxy to sell assets relating 7 brands within 6 months to ensure
that there is no monopoly, post which it will clear the merger deal.
Out of the 7 products 1 belongs to Sun Pharma and 6
belong to Ranbaxy. Combined value of the 7 brands is Rs 137 crore. Sun Pharma
said total sales represented by these 7 products are less than 1 per cent of
total sales.
Traders believe this approval will speed up the
merger process as the deal now need to get the approval of US Federal Trade
Commission only.
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