CCI approves P&G's acquisition of 51.80% stake in drug firm Merck Ltd

The Competition Commission has approved Procter & Gamble's acquisition of 51.80 per cent stake in drug firm Merck Ltd, which is listed on the Indian bourses.

The acquisition of 51.80 per cent stake in Merck Ltd by P&G for nearly Rs 12.9 billion is part of a global deal under which the latter is taking over German firm Merck KGaA's international consumer health business.

The global deal is for about 3.4 billion euro in cash.

In a tweet on Tuesday, the Competition Commission of India (CCI) said it has approved acquisition of 51.80 per cent stake by P&G in consumer health business of Merck Ltd.

The stake acquisition will be through Procter & Gamble Overseas India BV, an investment holding company held ultimately by P&G.

According to the notice submitted to the CCI, P&G had proposed to acquire the consumer health business of Merck KGaA globally, pursuant to a sale and purchase agreement dated April 19, 2018 (Global SAPA). As part of the agreement, P&G had also offered to buy the consumer health business of Merck Specialities.
 

Separately, following another sale and purchase agreement dated April 19, 2018 (India SAPA), Procter & Gamble Overseas India BV had proposed to acquire 51.80 per cent shares in Merck Ltd, as per the notice.

The global deal will be executed through the sale of Merck's shares in a number of legal entities as well as various asset sales and comprises the consumer health business across 44 countries, including more than 900 products and two consumer health-managed production sites in Spittal (Austria) and Goa (India).

The transaction is expected to close by the year end. JP Morgan acted as financial adviser to Merck on the transaction, while Freshfields Bruckhaus Deringer acted as its legal adviser.
 

The Competition Commission has also approved Singapore-based investment fund TPG Asia VII SF's stake acquisition in RR Kabel and Ram Ratna Electricals.

"@CCI_India approves acquisition of ~21 per cent stake in each RR Kabel and Ram Ratna Electricals by TPG Asia," the CCI said in a tweet.

RR Kabel manufactures wires and cables while Ram Ratna Electricals is the consumer electricals and appliances arm of RR Global Group.