New Delhi: After a detailed scrutiny, fair trade watchdog CCI has suggested Sun Pharma and Ranbaxy to make certain changes in their proposed USD 4 billion merger deal, including possible divestment of some brands, to address anti-competitive concerns.
The Competition Commission of India (CCI) has finalised its view on the mega deal, also the first transaction that was subject to public scrutiny, and the same has been conveyed to the concerned parties.
About the proposed deal with Ranbaxy, Sun Pharma said it has neither received any final order from CCI nor has there been any rejection of the transaction by the regulator.
"CCI has been seeking additional information and detailed clarifications with respect to specific aspects of the products for the purpose of making its assessment.
"We see the process nearing its logical closure. We are happy with the open and transparent manner in which the matter has progressed. It is our intent to fully comply with all the regulatory requirements as required to close the transaction," Sun Pharma said in a statement.
The deal, which CCI has prima-facie found to be in violation of competition norms, was inked in April this year and has been awaiting clearance from the competition watchdog since then.
Sources said that CCI is now awaiting response from the parties on the suggested changes.
Among others, CCI is believed to have suggested divestment of some brands in order to comply with competition norms, they added.
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 is also the first one where the commission sought public comments.
Major issues examined by CCI on the deal are with respect to the molecules market.
The public scrutiny of the deal, which would create the fifth largest speciality generics company in the world, ended on September 24.
This big ticket deal in the pharma space is also the first M&A transaction to have gone through public scrutiny.
