Sun Pharmaceutical Industries and Ranbaxy Laboratories rose by 0.80% to 1.73% at 10:10 IST after India's foreign investment promotion board approved the merger between the two companies.
Ranbaxy Laboratories (up 1.73%) and Sun Pharmaceutical Industries (up 0.80%), edged higher.
The S&P BSE Sensex was up 12.25 points, or 0.04% at 28,706.24.
In a filing to the stock exchange, Sun Pharmaceutical Industries (Sun Pharma) noted that the foreign investment promotion board (FIPB) had approved the proposal of the company for issuing equity shares of the company to the non-resident investors of Ranbaxy Laboratories (Ranbaxy) pursuant to the merger of Ranbaxy into Sun Pharma. The announcement was made before trading hours today, 1 December 2014.
The approval makes Sun Pharma and Ranbaxy closer to remove one more regulatory hurdle for the merger, media reports suggested.
In April 2014, Sun Pharma acquired Ranbaxy in $4 billion landmark transaction. As per the deal, shareholders will receive 0.8 share of Sun Pharmaceuticals Industries for each share of Ranbaxy.
According to media reports, the mega $4 billion deal, which will create the world's fifth largest pharmaceutical company by sales, is yet to receive approval from competition watchdogs in India (Competition Commission of India) and the US (Federal Trade Commission) and there are concerns the deal may get delayed as it is likely to create to dominant market share for the merged company in certain key segments.
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