Torrent-JB Chemicals Rs 25,689 Crore Merger Under CCI Lens Over Monopoly Concerns
New Delhi: The Competition Commission of India (CCI) has expressed serious concerns over the proposed merger between Torrent Pharmaceuticals and JB Chemicals, warning that the deal could create a dominant market position and reduce competition in critical therapeutic segments.
According to Zee Business report, sources familiar with the matter disclosed that the antitrust regulator has asked both companies to provide detailed information on product overlaps and market shares, with particular scrutiny on two drug categories: Nifedipine, used to treat hypertension, and Lactobacillus, a widely used probiotic. Analysts indicate that in these segments, the combined market share could reach 70–90% post-merger.
Earlier, the Medical Dialogues Team had reported that Torrent Pharmaceuticals Limited, in collaboration with global investment firm KKR, announced that Torrent has entered into definitive agreements to acquire a controlling stake in J. B. Chemicals and Pharmaceuticals from KKR at an Equity Valuation of Rs 25,689 crores (on a fully diluted basis), followed by a merger of the two entities.
The transaction marked a significant step in Torrent’s ambition to create a future-ready, diversified healthcare platform combining a deep chronic segment heritage with emerging international CDMO capabilities.
Officials warn that such concentration could distort pricing, restrict competition, and give the merged entity undue control over supply, negatively impacting smaller companies and patients.
However, to address regulatory concerns, both Torrent Pharma and JB Chemicals have proposed a three-year price freeze on these medicines.
The CCI has issued a notice under Section 29(1) of the Competition Act, initiating a detailed investigation into the merger’s potential anti-competitive effects. The regulator will determine the next steps after reviewing the companies’ submissions.
Industry observers note that this move is part of the CCI’s heightened scrutiny of pharmaceutical mergers, aimed at preventing market dominance and protecting consumer interests, reports Zee Business.
