Shares in Ranbaxy rallied more than three per cent after CCI approved a deal with Sun Pharma. The stock was up almost 3 per cent at Rs 643.
It maybe recalled that earlier this year Sun Pharma said that they will acquire Ranbaxy Laboratories in an all stock deal which will create India's largest pharma company and the world's 5th largest specialty generic pharma company.
The proposed transaction was approved by the Boards of Directors of SunPharma, Ranbaxy, and Ranbaxy's controlling shareholder, Daiichi Sankyo. Ranbaxy's board and Sun Pharma's board have recommended approval of the transaction to their respective shareholders.
"The acquisition is expected to be accretive to Sun Pharma's cash earnings per share in the first full year. Additionally, Ranbaxy's shareholders will participate in the value creation of the combined company through their ownership of Sun Pharma shares. Sun Pharma expects to realize revenue and operating synergies of US$ 250 million by third year post closing of the transaction.
These synergies are expected to result primarily from topline growth, efficient procurement and supply chain efficiencies. As part of the transaction, Sun Pharma intends to leverage the human capital that has supported both companies, in order to drive future growth," Sun Pharma had said in a release.