Sun Pharmaceuticals and Ranbaxy Laboratories have sold seven of their formulations to Emcure Pharmaceuticals to comply with an order from the Competition Commission of India (CCI).
According to Khaitan & Co, legal advisers to Sun Pharma, this is the first divestment of assets in India following a CCI order.
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The CCI approved the merger between Sun Pharma and Ranbaxy in December 2014, but noted that the deal would have an appreciable adverse effect on competition in markets for products containing seven specific formulations, which the companies were ordered to divest.
This is the first time the CCI has sought public comments and ordered a second stage investigation into a merger.
Emcure has its headquarters in India, manufacturing operations in India and the US, and subsidiaries in the US, Dubai, Brazil, South Africa, Singapore and Nigeria.
Khaitan & Co, led by partner Avantika Kakkar, helped identify Emcure as a possible buyer; prepared monthly reports for Sun Pharma for submission to the monitoring agency appointed by the CCI; coordinated with the monitoring agency on the sale process of the divestment products; prepared the proposal for Emcure to be approved as the purchaser; and negotiated the terms of the transaction agreements with the CCI.
Luthra & Luthra advised Ranbaxy.
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