India’s largest pharma company Sun Pharmaceutical Industries on Wednesday announced the closure of its merger with Ranbaxy Laboratories saying the integration will deliver synergies worth $250 million (over Rs.1,500 crore) in three years.
“The merger has created a combined entity which has much more managerial capability. We will look to retain and nurture the talent,” Sun Pharma managing director Dilip Shanghvi told reporters in Mumbai.
He said the company would invest more than $300 million (over Rs.1,800 crore) in research and development in 2015, which would be six to seven percent of the combined revenue.
Following the merger, Ranbaxy will be delisted from Indian stock exchanges while each Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy.
The merger will make Sun Pharma the largest pharmaceutical company in India with a market share of 9.2 percent and sales of $1.1 billion, as well as the world’s fifth largest maker of generic drugs after Teva, Sandoz, Activas and Mylan.
The Punjab and Haryana High Court had approved the merger earlier this month, while the US Federal Trade Commission (FTC) had approved the merger in January 2015.
On March 23, the Competition Commission of India (CCI) had approved the Sun Pharma and Ranbaxy sale of seven brands to Emcure Pharma to comply with the conditional nod for their merger. (IANS)