US-based Abbott on Friday said that it will acquire India's Piramal Healthcare's domestic formulation business for $ 3.72 billion (about Rs 17,484 crore).
"Abbott announced a definitive agreement with Piramal Healthcare limited to acquire full ownership of Piramal's Healthcare solutions(domestic formulations)...for an upfront payment of $ 2.12 billion, plus $ 400 million annually for the next four years," Abbott said in a statement.
Abbott said the acquisition will accelerate its growth in emerging markets "giving it the No 1 position in the Indian pharmaceutical market."
"This strategic action will advance Abbott into the leading market position in India, one of the world's most attractive and rapidly growing markets," Abbott Chairman and Chief Executive Officer Miles D White said.
At present, emerging markets account 20 per cent of the company's total business, he added.
Mumbai-based Piramal's domestic formulation business includes manufacturing, marketing and selling of branded generic pharmaceutical products in India, Nepal and Sri Lanka.
The asset to be transfered to the US firm include Piramal's manufacturing facilities at Baddi and marketing rights for over 350 brands and trademarks, Piramal Healthcare said.