Sun-Ranbaxy merger deal nears closure with HC nod

The buy-out of Ranbaxy Laboratories Ltd by with Sun Pharmaceutical Industries Ltd took a major step to closure today as the Punjab & Haryana High Court approved the deal.

Ranbaxy said in a statement to the Bombay Stock Exchange that the court's approval may pave the way for closure of the $4 billion merger within the current fiscal year, which will create the world's fifth-largest specialty generics company.

In January, the deal had received approval from the US Federal Trade Commission (FTC), which was examining it for any violation of its antitrust laws. The commission waived a key waiting clause,.

The Competition Commission of India had approved the merger in December last year, provided the two sold some overlapping brands. The CCI told the two firms to sell seven brands in which the two merged companies would have appreciable adverse effect on competition in India as a result of their market share, according to a statement on its website.

Sun will own nearly 54.7 per cent of the share capital in the new entity.

Announced last year, the deal valued Ranbaxy at $3.2 billion. Additionally, Sun will also be taking about $800 million of Ranbaxy's debt on its books.