India’s Sun Pharmaceutical Industries has obtained approval from the US Federal Trade Commission (FTC) to acquire Ranbaxy, in a $3.2bn deal.
Following completion of the acquisition review, FTC granted early termination of the waiting period, under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act).
In addition, FTC has accepted a proposed consent agreement, where both firms have agreed to sell Ranbaxy’s interests in generic minocycline tablets and capsules to an external third-party.
The deal was first announced in early April 2014. As part of the agreement, Ranbaxy shareholders will secure 0.8 share of Sun Pharma for each share they own.
At the time of acquisition, Sun Pharma managing director Dilip Shanghvi said: "Ranbaxy has a significant presence in the Indian pharma market and in the US where it offers a broad portfolio of ANDAs and first-to-file opportunities.
"We see tremendous growth opportunities and are excited with the prospects to create lasting value for both our shareholders through a successful combination of our franchises."
The Competition Commission of India (CCI) granted approval for the acquisition in early December 2014.
Ranbaxy claimed that combining both companies will create the fifth-largest specialty generics company in the world and the largest pharmaceutical company in India.
Both Daiichi Sankyo, which holds around 63.4% of the outstanding shares of Ranbaxy, and promoters of Sun Pharma have agreed to vote in favour of the transaction, noted Ranbaxy.
