CCEA clears Reckitt Benckiser's Rs3,300-cr Paras Pharma acquisition
29 Mar 2011
The Cabinet Committee on Economic Affairs (CCEA) today approved the proposal of Reckitt Benckiser plc of the UK to set up a new wholly owned subsidiary investing company to acquire the entire stake in Indian pharmaceutical company Paras Pharmaceuticals Limited.
"The approval is expected to result in foreign direct investment (FDI) amounting to Rs3,300 crore approximately in the wholly-owned subsidiary of Reckitt Benckiser Plc UK," an official statement said.
The subsidiary investing company will have 100 per cent equity participation by Reckitt Benckiser (Singapore) Pte Limited, Singapore (entire equity except 10 shares) and R&C Nominees Limited (10 shares), a CCEA release said today.
The investment subsidiary will make downstream investment in Paras Pharmaceuticals Limited by way of acquisition of 100 per cent equity.
The approval is expected to result in FDI amounting to nearly Rs3,300 crore in the wholly owned subsidiary of Reckitt Benckiser plc UK.
Reckitt Benckiser had, in December last year, agreed to fully acquire Ahmedabad-based Paras Pharmaceuticals Ltd for Rs3,260 crore.