Croslands Denies Merger With Nicholas Piramal
Croslands Research Laboratories Ltd issued a categorical denial of its merger with Nicholas Piramal, saying that the board of directors has not considered the merger in any meeting.
Croslands director, V Shankar, said that Nicholas Piramal had approached Croslands with a proposal and the latter had not accepted it.
Croslands sources said their company had a very strong brand equity and it would be extremely expensive for any company to acquire it.
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Moreover, the board of Croslands would not give up the right to management of its own company.
In a faxed reply to the Business Standard questionnaire, Nicholas sources said that a draft memorandum of understanding (MoU) had been under preparation by common solicitors and the reason behind the talks being called off could be that the share swap ratio recommended by the two member valuation of Y Malegam and Bansi Mehta was unacceptable to Croslands.
They also said that Croslands had not officially communicated their rejection of the merger proposal to Nicholas.
Industry sources had earlier said that Croslands is a strong company with immense growth potential in the niche markets of dermatological and ophthalmic products and had expressed surprise at its entering into talks for a merger with Nicholas Piramal.