A proposed deal by France’s Sanofi-Aventis to buy a majority stake in Indian drug maker Piramal Healthcare Ltd has fallen through due to differences over valuation, a newspaper reported on Monday.
In Februray, a source familiar with the situation had told Reuters that GlaxoSmithKline Plc and Sanofi-Aventis were bidding for the Indian drug maker, with the sale price perhaps going as high as $1.5 billion.
Mumbai-based Piramal has repeatedly denied acquisition reports, calling them ‘unfounded´, and has said the founder has no intention of diluting current ownership levels.
“Sanofi Aventis had put a valuation of over 300 rupees per share for Piramal Healthcare. But, this price was not acceptable to the promoters,” The Economic Times newspaper quoted a merchant banker familiar with the development as saying.
Talks between the two companies had reached an advanced stage before it collapsed, the paper said, citing another senior pharma industry official briefed about the proposed deal.
A Piramal spokesman declined comment while Sanofi-Aventis officials could not be reached for comments immediately.
(Reporting by Bharghavi Nagaraju; Editing by Ramya Venugopal)