CCI invites public comments on Sun-Ranbaxy deal

The commission has already asked the companies to make the details of their proposed transaction public within within 10 working days

The Competition Commission of India (CCI) has invited public comments from all stakeholders, including general public, on the proposed merger deal between Sun Pharmaceutical Industries and Ranbaxy Laboratories.

“The Commission invites comments/objections/suggestions in writing, from any person(s) adversely affected or likely to be affected by the combination…within 15 working days from the date of publication,” said CCI in a statement on Thursday.

CCI 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”.

Widening its scrutiny of the multi-billion dollar deal, CCI has already asked Sun and Ranbaxy to make public the details of their proposed transaction in a prescribed format within 10 working days. Both companies informed the stock exchanges on Thursday about the CCI direction, given under Section 29(2) of the Competition Act, 2002.

This is the first instance where the CCI has ordered a public scrutiny of a proposed merger and acquisition (M&A) deal to ensure compliance to fair trade regulations.

On April 6, Sun Pharma had announced it would buy Ranbaxy from Japan's Daiichi Sankyo in an all-share deal pegged at $4 billion, including the debt of $800 million on Ranbaxy's books. Sun said it expected the deal to be closed by the end of 2014.

The deal has been approved by the major stock exchanges and by the two companies' shareholders.

Completion of the deal will make Sun the country's largest drug maker by sales and the world's fifth largest generic manufacturer. Yet, the transaction has attracted tough scrutiny by the competition watchdog, citing its significance for the public interest.