India’s Competition Commission asks Sun Pharma to amend Ranbaxy takeover deal

The Indian Competition Commission has asked domestic generics company Sun Pharmaceutical Industries (BSE: 524715), which acquired fellow Indian drug maker Ranbaxy Laboratories (BSE: 500359) in April, to amend the $3.2 billion merger, according to The Wall Street Journal.

According to reports, the CCI has requested some amendments, which have been submitted by the two companies. The CCI became involved in the deal in August after Sun Pharma acquired Ranbaxy in an all-stock transaction with a total equity value of $3.2 billion along with debt of $800 million, taking the overall deal value to $4 billion. It came to the attention of the CCI because the acquisition means that Sun Pharma has a large dominant position in the Indian pharma market.

Sources say the CCI is concerned the merged company would hold a dominant position in generic drugs in the country. It would make Sun Pharma the world's fifth largest generic drugmaker.