Ranbaxy in talks with CCI on 'specific products' for Sun deal

Awaiting a long-pending approval for its merger with Sun Pharmaceutical, drug maker Ranbaxy today said it is in talks with fair trade watchdog CCI with regard to "certain products".
"We are in communication with the Competition Commission of India (CCI) on specific products and as of now have not received any final order from the CCI regarding divestment of the products," Ranbaxy Laboratories said.
The statement was made in reply to a clarification sought by the National Stock Exchange (NSE) from the company on reports that CCI wants changes to its deal with Sun Pharmaceutical.
The USD 4-billion deal, which CCI has prima-facie found to be in violation of competition norms, was inked in April this year.

Competition Commission of India (CCI) has suggested Sun Pharma and Ranbaxy to make certain changes in their proposed merger deal, including possible divestment of some brands, to address anti-competitive concerns.
Sources had said the regulator is now awaiting response from the parties on the suggested changes.

Among others, CCI is believed to have suggested divestment of some brands in order to comply with competition norms, sources had said.
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 is also the first one where the commission sought public comments.
Major issues examined by CCI on the deal are with respect to the molecules market.
On Monday, Sun Pharmaceutical said that CCI has been seeking additional information and detailed clarifications with respect to specific aspects of the products for the purpose of making its assessment.
"We see the process nearing its logical closure. We are happy with the open and transparent manner in which the matter has progressed. It is our intent to fully comply with all the regulatory requirements as required to close the transaction," Sun Pharma had said in a statement.