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India: CCI expected to force concessions from Sun/Ranbaxy merger

By  |  October 15, 2014

The Competition Commission of India is expected to require certain concessions from pharmaceutical giants Ranbaxy Laboratories and Sun Pharmaceutical before they are given clearance to merge, say reports.

According to an unnamed source, the CCI will likely recommend “structural remedies” to ensure competition is not harmed from the transaction. Those remedies, reports say, may include selling assets, though neither company commented on the reports.

Sun first announced last April that it has reached an agreement with Japan-based Daiichi Sankyo to acquire Ranbaxy for about $4 billion. The companies expect to close the deal by the end of the year.

The CCI is reportedly set to send a letter to the companies suggesting its concessions; the unnamed source said the watchdog will also likely establish “a monitoring agency to ensure adherence consequent to the order.”

Full content: Business Standard

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