The Competition Commission of India (CCI) is likely to finalse this month its decision on the $4-billion Sun Pharma-Ranbaxy deal – the first M&A (merger and acquisition) transaction to have gone through public scrutiny amid concerns of its adverse impact on fair competition in the market.
The big-ticket deal, which would create the country’s largest pharmaceutical company, has 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 competition watchdog, which is mandated to keeps a tab on unfair trade practices in the market place across sectors, is expected to take a final decision on the Sun Pharma-Ranbaxy deal this month, a senior official said.
The public scrutiny of the deal, which would create the fifth largest specialty generics company in the world, ended on September 24. Major issues being examined by CCI on the deal are with respect to the molecules market.
The combined entity would have operations in 65 countries, 47 manufacturing facilities across 5 continents, and a significant platform of specialty and generic products marketed globally. The deal, announced in April this year, is also the first one where the commission sought public comments.