Zee Media Bureau
New Delhi: In a major move to create the country's largest pharmaceutical company, fair trade regulator Competition Committee of India (CCI) on Monday approved the merger between Sun Pharma and Ranbaxy Laboratories.
However, the approval did not come without its share of conditions as the CCI asked the two companies to divest some products as not to affect fair competition in the market.
Under the conditions, Sun Pharma will divest products involving Lueprorelin. The divest products will include Tamplet and Lupride.
On the other hand, Ranbaxy Laboratories will divest products such as Raciper L, Terlibax, Triolvance, Olanex F and Rosuvas EZ.
However, the divestment will not include products of manufacturing units of parties.
The deal is likely to have adverse effect on seven markets, sources said.
The the $4 billion deal was inked in April this year and has been awaiting clearance from the competition watchdog since then.
Though the the first M&A transaction was said to have gone through public scrutiny amid concerns of adverse impact on fair competition in the market.
The deal 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".
Earlier in December, after a detailed scrutiny, the CCI had suggested the two companies to make certain changes in their proposed USD 4 billion merger deal, including possible divestment of some brands, to address anti-competitive concerns.
