M&A Lab

December 19, 2014

Sun Pharma – Ranbaxy: A Panacea for Ranbaxy's ills?

April 6, 2014 was a red letter day for the Indian pharmaceutical industry as Sun Pharmaceutical Industries Limited (“Sun Pharma”) and Ranbaxy Laboratories Limited (“Ranbaxy”) announced that they had entered into definitive documents for merger of Ranbaxy with Sun Pharma (“Transaction”). The announcement came amidst reports of faltering standards at Ranbaxy’s manufacturing plants and consequent import bans imposed on Ranbaxy by the United States Food and Drug Administration. The Transaction would give rise to a pharmaceuticals giant – the fifth-largest specialty generics company in the world and the largest pharmaceutical company in India.

As is the case with other high value M&A transactions, there were concerns that the combined entity post this Transaction could potentially stifle competition with its sizeable portfolio of specialty and generic products. The Transaction came under the scrutiny of antitrust regulators in India and the United States of America. There were also allegations of violations of India’s insider trading regulations by an entity connected to Sun Pharma. Despite these challenges, the Transaction has proceeded full steam ahead, with the Competition Commission of India granting its conditional approval to the Transaction on December 5, 2014. The United States Federal Trade Commission is also expected to clear the Transaction soon.

If all goes well, this Transaction could define the global pharmaceuticals landscape for the foreseeable future. All eyes are on Mr. Dilip Shanghvi, the managing director of Sun Pharma, to see whether Mr. Shanghvi’s magic will convert Ranbaxy into a 'crown jewel' or a 'white elephant' for Sun Pharma. This M&A Lab analyzes the legal, regulatory, tax and commercial considerations pertaining to the Transaction.

For a detailed analysis of the commercial, legal, regulatory and tax considerations and to access the M&A Lab, please click here.

Nikhil Joseph, Sahil Shah, Ruchi Biyani & Nishchal Joshipura

You can direct your queries or comments to the authors


The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.




Proud Moments

Benchmark Litigation Asia-Pacific: Tier 1 for Government & Regulatory and Tax
2020, 2019, 2018

Legal500 Asia-Pacific: Tier 1 for Tax, Investment Funds, Labour & Employment and TMT
2020, 2019, 2018, 2017, 2016, 2015, 2014, 2013, 2012

Chambers and Partners Asia Pacific: Band 1 for Employment, Lifesciences, Tax and TMT
2020, 2019, 2018, 2017, 2016, 2015

IFLR1000: Tier 1 for Private Equity and Project Development: Telecommunications Networks.
2020, 2019, 2018, 2017, 2014

AsiaLaw Asia-Pacific Guide 2020: Tier 1 (Outstanding) for TMT, Labour & Employment, Private Equity, Regulatory and Tax

FT Innovative Lawyers Asia Pacific 2019 Awards: NDA ranked 2nd in the Most Innovative Law Firm category (Asia-Pacific Headquartered)

RSG-Financial Times: India’s Most Innovative Law Firm
2019, 2017, 2016, 2015, 2014

NDA Connect

Connect with us at events, 
conferences and seminars.