Sun gets RBI nod for transfer of Ranbaxy investments abroad

Sun Pharmaceutical Industries has received Reserve Bank of India approval for transfer of the foreign investments of Ranbaxy to it and issuing its shares to non-resident shareholders of the latter as part of their $4-billion merger deal.

In a filing to the BSE, Ranbaxy Laboratories said RBI gave the approvals on Monday.

The two firms have received nod from the Competition Commission of India (CCI) on Sunday for the sale of seven brands to Emcure Pharma to comply with the fair trade watchdog’s conditional nod for their merger. CCI approved the deal with Emcure, which would purchase the ‘divestment products’ that were ordered to be sold in an earlier direction issued in December.

These seven brands were at the core of the CCI's contention that the merger between Sun Pharmaceutical Industries and Ranbaxy Laboratories was 'prima-facie' in violation of competition laws and therefore the regulator had ordered divestment of those products under its 'conditional' approval to the deal.

Despite sale of these products, the merger would create India's largest and the world's fifth largest drugmaker.

In December, CCI had directed Sun Pharma to divest all products containing 'Tamsulosin + Tolterodine' which are marketed and supplied under the Tamlet brand name.

Similarly, Ranbaxy was directed to divest all products containing Leuprorelin which are marketed and supplied under the Eligard brand name. It also had to divest products such as Terlibax, Rosuvas EZ, Olanex F, Raciper L and Triolvance.