The Pujnab & Haryana High Court in India has cleared the $4-billion merger between Sun Pharmaceutical Industries and Ranbaxy Laboratories, which will make Sun the world’s fifth-largest generic drug maker, Business Standard (BS)(India) reports.
The buyout is valued at $3.2 billion, but with Ranbaxy’s debts of $800 million, the overall transaction value comes to $4 bn, adds the report.
Japan’s Daiichi Sankyo acquired a 63.9 per cent stake in Ranbaxy for $4.2 bn in 2008, but, the BS report adds, "the value of its investment has since halved, as Daiichi hasn’t been able to ensure compliance with norms at Ranbaxy’s factories supplying drugs to the US."
