CCI decision on Sun-Ranbaxy deal before month end, says Chawla

Competition Commission is at an "advanced stage" of finalising its decision on the USD 4 billion Sun Pharma-Ranbaxy deal and an order is expected before month-end.
This big ticket deal in the pharma space is also the first M&A transaction to have gone through public scrutiny amid concerns of adverse impact on fair competition in the market.
"We will be finalising our order and a decision on that within the next week or so. It is at a very advanced stage and our people are engaging with the companies and their representatives. The final order will be available before the end of this month," Competition Commission of India (CCI) Chairman Ashok Chawla said here today.

The fair trade watchdog had asked the two companies to come up with some remedial measures which they have submitted.
Sun Pharma-Ranbaxy transaction, which would create the country's largest pharmaceutical company, had come under close scrutiny of CCI after it was found prima-facie that the "combination is likely to have an appreciable adverse effect on competition.
The combined entity would have operations in 65 countries, 47 manufacturing facilities across 5 continents, and a significant platform of speciality and generic products marketed globally. The deal, announced in April this year, is also the first one where Commission sought public comments.

The public scrutiny of the deal, which would create the fifth largest speciality generics company in the world, ended on September 24. Major issues being examined by CCI on the deal are with respect to the molecules market.

Responding to a query on whether the regulator was looking at alleged unfair practices in the movement of air fares, Chawla said the issue keeps coming back to the Commission from various quarters.
"We are obliged to look at it but I am not sure at what stage the examination is and we are not certainly at any position where we can decide one way or the other," he said.
He, however, did not disclose any specific details.
Chawla was speaking to reporters on the sidelines of Skoch Summit.