The Punjab and Haryana High Court on Monday gave its nod to the merger of two Indian pharmaceutical companies - Ranbaxy Laboratories Limited with Sun Pharmaceutical Industries Limited.
The High Court also dismissed certain objections to the merger by the workers, the official liquidator, the Regional Director, Ministry of Corporate Affairs, and two unsecured creditors.
The orders by Justice Rajesh Bindal is significant as it has paved way for closure of $4 billion or Rs 24,511 crore amalgamation within the current fiscal year.
The nod came on a petition filed by Mohali-based company Ranbaxy through senior advocate Anand Chhibbar, less than a year after Sun Pharmaceuticals agreed to acquire Ranbaxy Laboratories.
Chibbar had submitted that the gross sales of the combined entity after the merger would be around Rs 27,000 crore and it would have a diverse, highly complementary portfolio of specialty and generic products targeting a spectrum of chronic and acute treatments.
In August last year, the Punjab and Haryana High Court had on a petition filed by Ranbaxy convened a meeting of the company's shareholders in Mohali to get their vote on amalgamation.
On September 29, 2014, the High Court allowed the petition, since 99 per cent of the shareholders had approved the scheme. The deal had earlier received approval from the US Federal Trade Commission.
On September 29, 2014, the High Court allowed the petition, since 99 per cent of the shareholders had approved the scheme. The deal had earlier received approval from the US Federal Trade Commission.
Examining the deal under its antitrust laws, the Commission had waived a key waiting clause allowing the two firms to hasten the merger. The Competition Commission of India too had approved the merger of Sun and Ranbaxy, provided the two sold some overlapping brands.