Sun Pharma, Ranbaxy hit record high on getting US trade regulator nod for merger

Ranbaxy Laboratories rallied nearly 4% at Rs 729, while Sun Pharma is up 2.3% at Rs 939 on the National Stock Exchange

Shares of Sun Pharmaceutical Industries and Ranbaxy Laboratories have touched their respective record highs on the bourses after the Sun Pharma received US Federal Trade Commission (FTC) clearance for Ranbaxy's acquisition.

At 0927 hours, shares of Sun Pharma were up 2.3% at Rs 939 on the National Stock Exchange (NSE). The stock hit a record high of Rs 944 so far. Ranbaxy Laboratories, on the other hand, has rallied nearly 4% at Rs 729, also its new high on NSE.

“The U.S. Federal Trade Commission (FTC) has completed its review of the proposed acquisition of Ranbaxy by Sun Pharma and has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act),” Sun Pharma and Ranbaxy said in a separate filing.

The early termination of the waiting period under the HSR Act satisfies one of the essential conditions to the closing of the Ranbaxy acquisition.

Sun Pharma and Ranbaxy also announced that the FTC accepted a proposed consent agreement pursuant to which, Sun Pharma and Ranbaxy have agreed to divest Ranbaxy’s interests in generic minocycline tablets and capsules to an external third party.

Sun Pharma and Ranbaxy are working closely towards completion of the transaction and will comply with the conditions laid down in the FTC consent agreement within the specified time, it added.