Home / Business / Money / CCI asks Sun-Ranbaxy to divest some brands: Sources

CCI asks Sun-Ranbaxy to divest some brands: Sources

Around 37 drug categories are under scanner for potential market dominance. The CCI, which expects Sun-Ranbaxy to make changes as directed, wants a response from the companies by December 2

The Competition Commission of India (CCI) has sent back the merger deal of Sun Pharma  and Ranbaxy  to the respective companies to make certain changes, sources tell CNBC-TV18, adding that the regulator has asked Sun-Ranbaxy to divest some brands to avoid monopolistic scenario.

The mega USD 4-billion deal, which will create the world’s fifth largest pharmaceutical company by sales, is yet to receive approval from competition watchdogs in India (CCI) and the US (Federal Trade Commission). There are concerns that the deal may get delayed as it is likely to create to dominant market share for the merged company in certain key segments, primarily in anti-diabetic and cardiology therapies. The merged entity will have 9.2 percent share of the Indian pharma market.

Around 37 drug categories are under scanner for potential market dominance. The CCI, which expects Sun-Ranbaxy to make changes as directed, wants a response from the companies by December 2. The regulator is likely to give final views on the deal by December 5, sources add.

Sun Pharma declined to comment on CNBC-TV18 query.

Leave a Reply

x

Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...