Fair trade watchdog CCI has given its approval to the proposed merger of Chennai-based Shasun Pharmaceuticals with drug maker Strides Arcolab.
"The proposed combination is not likely to have any appreciable adverse effect on competition in India and therefore, the Commission hereby approves the proposed combination," the Competition Commission of India (CCI) said in an order dated March 4.
Under the proposed deal, Shasun will amalgamate with Strides in an all-stock transaction.
The combination of Strides and Shasun would create a company with a turnover of Rs 2,500 crore, placing the combined entity among the top 15 listed drug makers.
Shashun shareholders would receive 5 equity shares of Strides for every 16 shares held by them in Shasun.
Based on the exchange ratio, Shasun shareholders would own 26 per cent of the combined entity.
Strides, a Bangalore-based firm develops and manufactures IP-led niche pharmaceutical products. It has 8 manufacturing facilities presence in more than 75 countries.
Incorporated in 1976, Shasun is a global supplier of development and manufacturing services for intermediates, API and formulations to the pharmaceutical industry.