FIPB approves Sun Pharma's Ranbaxy deal
The deal is a US$ 4 billion all-stock deal between Sun Pharma and Ranbaxy.
New Delhi, December 2, 2014: The Foreign Investment Promotion Board (FIPB) has given a green signal to the Sun Pharma acquisition of Ranbaxy. The deal is a US$ 4 billion all-stock deal between Sun Pharma and Ranbaxy and it sought the FIPB approval for issuing equity shared to non resident Indians in lieu of their holding in the latter.
Ranbaxy shareholders are expected to receive 0.8 share of Sun Pharma for each share of Ranbaxy. It is important to note there that there is no immediate foreign inflow on account of this deal.
The deal will not require the approval of Competition Commission of India.
The Ministry of Finance said in a statement that based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on November 14, 2014, the Central Government has approved 15 proposals of Foreign Direct Investment (FDI) amounting to Rs 689.35 crore approximately.