<p>Putting the multi-billion dollar Sun Pharma-Ranbaxy deal under close scrutiny, fair trade watchdog CCI has sought more information from them to ascertain whether the deal would skew fair competition in pharma sector.<br /><br /></p>.<p>Competition Commission of India (CCI) would take a final view on the deal after receiving details from them and could seek more information if it is not satisfied with the responses.<br /><br />"We have sought more information from the two companies. We will take a final view after getting the required information," a senior CCI official told PTI.<br /><br />Sun Pharma declined to comment on whether it has submitted the responses to CCI, while queries sent to Ranbaxy did not elicit any response.<br /><br />For CCI, this is one of the biggest M&A deals and also the first major transaction from pharma sector and therefore its decision in this case could have larger implications.<br /><br />In case CCI finds the deal in the current form could hurt fair competition in the domestic pharma market, it can even direct the companies to divest some assets as a pre requisite for approval.<br /><br />The USD 4 billion-worth deal would create the fifth- largest speciality generics company in the world and the largest pharmaceutical company in India.<br /><br />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.<br /><br />In April, Sun Pharmaceutical Industries announced it would acquire troubled rival Ranbaxy Laboratories in a USD 4-billion deal that includes USD 800 million debt. The transaction has valued Ranbaxy at 2.2 times its USD 1.8 billion revenue for 2013, or about Rs 457 per share.<br /><br />Last month, the deal was approved by leading stock exchanges BSE and NSE. The 'no-objection' from the two exchanges would allow the two companies to file their scheme of amalgamation with the High Court for further clearance of the deal.</p>
<p>Putting the multi-billion dollar Sun Pharma-Ranbaxy deal under close scrutiny, fair trade watchdog CCI has sought more information from them to ascertain whether the deal would skew fair competition in pharma sector.<br /><br /></p>.<p>Competition Commission of India (CCI) would take a final view on the deal after receiving details from them and could seek more information if it is not satisfied with the responses.<br /><br />"We have sought more information from the two companies. We will take a final view after getting the required information," a senior CCI official told PTI.<br /><br />Sun Pharma declined to comment on whether it has submitted the responses to CCI, while queries sent to Ranbaxy did not elicit any response.<br /><br />For CCI, this is one of the biggest M&A deals and also the first major transaction from pharma sector and therefore its decision in this case could have larger implications.<br /><br />In case CCI finds the deal in the current form could hurt fair competition in the domestic pharma market, it can even direct the companies to divest some assets as a pre requisite for approval.<br /><br />The USD 4 billion-worth deal would create the fifth- largest speciality generics company in the world and the largest pharmaceutical company in India.<br /><br />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.<br /><br />In April, Sun Pharmaceutical Industries announced it would acquire troubled rival Ranbaxy Laboratories in a USD 4-billion deal that includes USD 800 million debt. The transaction has valued Ranbaxy at 2.2 times its USD 1.8 billion revenue for 2013, or about Rs 457 per share.<br /><br />Last month, the deal was approved by leading stock exchanges BSE and NSE. The 'no-objection' from the two exchanges would allow the two companies to file their scheme of amalgamation with the High Court for further clearance of the deal.</p>