HYDERABAD: Nearly a year after announcing the acquisition of ailing Ranbaxy Laboratories Ltd, Sun Pharmaceuticals Industries, on Tuesday said the merger has finally been 'consummated.'
The $4 billion deal was announced on April 7, 2014 and with Sun getting the Reserve Bank of India's approval for transfer of Ranbaxy's overseas investments, approvals from respective High Courts and Registrar of Companies on Tuesday, all the statutory and regulatory compliances have been met.
"With these filings, the merger of Ranbaxy into Sun Pharma has been consummated," Sun said in a filing with the Bombay Stock Exchange.
The all-stock transaction including Ranbaxy's $800 million debt component, has been the country's biggest domestic acquisitions in the recent past. Following the merger, Sun emerged as the world's fifth largest and the country's largest drug firm by sales.
Currently, Ranbaxy is banned from importing its products from India plants to the US.
Earlier, Sun had indicated the acquisition to be accretive to earnings per share in the first full year and expects revenues of $250 million and operating synergies by the third year. According to Dilip Shanghvi,( the founder and MD of Sun Pharmaceuticals, the combined entity would focus on fixing manufacturing quality issues at Ranbaxy in order to resume exports.
Meanwhile, RBI's approval involves transfer of overseas investments held by Ranbaxy in its joint venture and wholly-owned subsidiaries to Sun pursuant to the proposed merger.
It also approved issue of equity shares of Sun to the non-resident holders of equity shares of Ranbaxy.
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