Torrent Pharma seeks CCI clearance to acquire majority stake in JB Pharma in Rs 19500 crore deal
Ahmedabad: Torrent Pharmaceuticals has sought clearance from the Competition Commission of India (CCI) for its massive Rs 19,500 crore acquisition of a majority stake in JB Chemicals & Pharmaceuticals.
This deal, once approved and completed, will catapult Torrent into the position of India’s second most valued pharmaceutical company.
"The proposed combination relates to acquisition of shareholding by the acquirer (Torrent Pharmaceuticals Ltd) in the target (J B Chemicals & Pharmaceuticals Ltd) and the subsequent amalgamation of the target with the acquirer," as per the notice filed with the Competition Commission of India (CCI).
Both companies activities exhibit horizontal overlaps in certain markets, particularly in the manufacturing and sale of pharmaceutical formulations (FDFs) in India, PTI reported.
This clearance was sought after the Torrent Pharma announcement in June about the acquisition of a majority stake in J B Chemicals and Pharmaceuticals in a Rs 19,500-crore deal.
In June, Torrent said it will acquire 46.39 per cent stake from promoters Tau Investment Holdings Pte Ltd, an affiliate of global investment firm KKR, for about Rs 11,917 crore. It would additionally buy another 2.80 per cent from certain employees of JB Chemicals at the same acquisition price of Rs 1,600 per share (totaling Rs 719 crore).
Torrent Pharmaceuticals is the flagship company of the Torrent group and is engaged in the business of manufacturing and sale of pharmaceutical formulations (FDFs) across therapeutic segments
J B Chemicals & Pharmaceuticals is engaged in business of manufacturing and marketing of diverse range of FDFs and APIs (Active Pharmaceutical Ingredients) and also provides CDMO (Contract Development and Manufacturing Organisation) services as well.
Disclaimer: This website is primarily for healthcare professionals. The content here does not replace medical advice and should not be used as medical, diagnostic, endorsement, treatment, or prescription advice. Medical science evolves rapidly, and we strive to keep our information current. If you find any discrepancies, please contact us at corrections@medicaldialogues.in. Read our Correction Policy here. Nothing here should be used as a substitute for medical advice, diagnosis, or treatment. We do not endorse any healthcare advice that contradicts a physician's guidance. Use of this site is subject to our Terms of Use, Privacy Policy, and Advertisement Policy. For more details, read our Full Disclaimer here.
NOTE: Join us in combating medical misinformation. If you encounter a questionable health, medical, or medical education claim, email us at factcheck@medicaldialogues.in for evaluation.