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India: CCI forces changes on Sun Pharma/Ranbaxy deal

 |  November 16, 2014

The Competition Commission of India will demand changes to the proposed merger between Sun Pharma and Ranbaxy, two pharmaceutical giants set to combine for $3.2 billion.

CCI chairwoman Ashok Chawla said Friday that the authority has asked the pharmaceutical companies to alter their agreement after the CCI found the deal could harm competition. Specifically, reports say the CCI is concerned the deal would lead to higher generic drug costs.

Chawla said a final ruling will be made by the end of the month, but a spokesperson for Sun said that due to “concerns by the competition regulators,” the deal’s closing could possibly be delayed until after the new year.

The Sun/Ranbaxy deal has faced particular scrutiny in India, where it would create its largest pharmaceutical company, and the fifth-largest generics manufacturer in the world.

Full content: Wall Street Journal

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