Sun-Ranbaxy USD 4 billion merger completed
The two firms have received a nod from the Competition Commission for sale of seven brands to Emcure Pharma to comply with the fair trade watchdog’s conditional nod for their merger. In an order issued yesterday, CCI approved the deal with Emcure, which would purchase the ‘divestment products’ that were ordered to be sold in an earlier direction issued in December last by the Competition Commission of India (CCI). These seven brands were at the core of the CCI’s contention that the merger between Sun Pharmaceutical Industries and Ranbaxy Laboratories was ‘prima-facie’ in violation of competition laws and therefore the regulator had ordered divestment of those products under its ‘conditional’ approval to the deal. In December, CCI had directed Sun Pharma to divest all products containing ‘Tamsulosin + Tolterodine’ which are marketed and supplied under the Tamlet brand name. Similarly, Ranbaxy was directed to divest all products containing Leuprorelin which are marketed and supplied under the Eligard brand name. It also had to divest products such as Terlibax, Rosuvas EZ, Olanex F, Raciper L and Triolvance.
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Remedying the Problems in Merger
Commission often provides remedies to the problems of the merger so that the deal can get the green signal.
In Phase I mergers cleared by European Commission – Pfizer/Wyeth[22] between two originators ultimately raised no issues in the area of human pharmaceuticals but was cleared subject to a number of divestments relating to animal-health vaccines, animal-health pharmaceuticals, and medicinal-feed additives. Abbott/Solvay Pharmaceuticals[23] raised competition concerns in relation to certain IVD genetic testing products. Abbott submitted divestment commitments in relation to CF testing.