CCI clears Temasek's 10.16% stake buy in Intas

Says the deal will not have an adverse affect on competition in India

Singapore government's investment arm Temasek Holding's proposed 10.16% stake purchase in Indian firm Intas Pharmaceuticals has got the approval of the Competition Commission.

According to the fair trade watchdog "the proposed combination is not likely to have an appreciable adverse effort on competition in India".

Under the deal, Dunearn Investments (Mauritius) -- a indirect subsidiary of Temasek -- would acquire 10.16% shareholding in Intas from ChrysCapital III LLC group firm Mozart Ltd.

Intas, incorporated in India, is a vertically integrated pharmaceutical company with global operations.

Clearing the deal in an order dated September 2, the Competition Commission of India said "there are no horizontal overlaps between the products and services of Intas and the rest of the Temasek group".

It also noted that Temasek had some minority investment in the companies engaged in the pharmaceutical and health sector in India including Medreich Ltd.

However, CCI said that "in respect of the overlapping products of Intas and Medreich Ltd, the combined market share is of minimal nature.

"Further, as stated in the notice neither Temasek nor any of its subsidiaries, associates or joint ventures has any significant vertical linkage with any of the business activities of Intas or its subsidiaries in India".

As per details in the order, post execution of the combination, Dunearn would secure all the affirmative voting rights which were earlier available to Mozart.

These rights are for the purpose of protecting the minority stake of Dunearn in the target company and would not be intended, nor likely, to result in operational control of Intas by the Dunearn, as promoters will continue to remain in its control and management, the order said.

Dunearn had approached CCI for approval on June 23.