Fair trade watchdog CCI’s deadline for public comments on the USD 4 billion Sun Pharmaceuticals-Ranbaxy Laboratories deal, which has raised concerns of adverse impact on competition, ends on Wednesday.
This is also the first M&A deal where the Competition Commission of India (CCI) has ordered a public scrutiny of after forming a “prima facie opinion that the combination is likely to have an appreciable adverse effect on competition”.
The USD 4-billion deal would create the fifth largest specialty generics company in the world and the largest pharmaceutical company in India.
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The combined entity would have operations in 65 countries, 47 manufacturing facilities across 5 continents, and a significant platform of specialty and generic products marketed globally.
Announcing the public scrutiny process, the Commission on September 4 had said the comments should be submitted to it within 15 working days. The deadline is ending on Wednesday.
The comments should be given along with supporting documents on how the merger can adversely impact the concerned person or entity, the regulator said, while adding that it would not consider ‘unsubstantiated objections’ to the deal.
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On September 4, CCI had said the public consultation process has been launched in order to determine whether the combination has or is likely to have an appreciable adverse effect on competition in the relevant market in India.
“The Commission formed a prima facie opinion that the combination is likely to have an appreciable adverse effect on competition and accordingly directed Sun Pharma and Ranbaxy (Parties) to publish details of the combination within ten working days for bringing the combination to the knowledge or information of the public and persons affected or likely to be affected by such combination,” it had said.
The fair trade watchdog had asked the two pharma majors on August 27 to make public specific details of their proposed merger.
CCI has the mandate to ensure fair competition at the market place across sectors.