KKR-Gland Pharma deal gets Competition Comm nod

Global private equity player KKR's proposed deal, including stake purchase, with domestic drug maker Gland Pharma has received green signal from the Competition Commission.
KKR, in November last year, had announced it would acquire minority stake for USD 200 million in Gland Pharma.
Competition Commission of India (CCI) has given nod for the proposal, which involves multiple transactions, saying the deal does not raise anti-competitive concerns.
As per the proposed deal, Singapore-based KKR Floorline Investments Pte Ltd, part of KKR, would acquire 37.98 per cent stake in Gland Pharma.
Besides KKR Floorline would purchase 24.9 per cent stake in Gland Celsus Bio Chemicals.

Meanwhile, Gland Celsus would hike its stake in Gland Pharma to 30.24 per cent from 17.7 per cent.

In an order released today, CCI said "the proposed combination is not likely to have appreciable adverse effect on competition in India".
Gland Celsus also has stake in two firms -- Gland Chemicals and Nicomac Clean Rooms Far East.
CCI noted that there is no horizontal overlap or vertical relationship between the activities of the companies in the healthcare sector in which KKR has investment and that of Gland Pharma, Gland Celsus, Gland Chemicals and Nicomac.
"Further, the supply of APIs (active pharmaceutical ingredients) from Gland Chemicals to Gland Pharma or the clean room products from Nicomac to Gland Pharma, is also not significant enough to result in any competition concern in India," it added.

Gland Pharma is engaged in the business of production and marketing of specialised injectable formulations for generic versions of drugs, it also manufactures a limited quantity of APIs for in-house consumption.
KKR, Gland Pharma and Gland Celsus had entered into the share purchase agreements on November 27 last year. KKR had also entered into a shareholders' agreement with the promoters of Gland Pharma and EILSF Co-Invest I LLC, an existing private equity investor in Gland Pharma.
The fair trade regulator received the notice from KKR and Gland Celsus on December 26, 2013 seeking approval on the proposed deal.