Tuesday, 9 December 2014

CCI approval lifts Sun Pharma, Ranbaxy share

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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