CCI Grants Approval To Acquisition of Majority Stake in Unichem Laboratories by Ipca Laboratories Ltd.

CCI Grants Approval To Acquisition of Majority Stake in Unichem Laboratories by Ipca Laboratories Ltd.

The Competition Commission of India (CCI) has granted approval to the proposed combination involving the acquisition of shareholding up to 59.38 percent of Unichem Laboratories Ltd by Ipca Laboratories Ltd.

Ipca Laboratories Limited (Acquirer) is a pharmaceutical company that manufactures formulations and active pharmaceutical ingredients for various therapeutic segments.

Unichem Laboratories Limited (Target) is active in the sale of formulations, active pharmaceutical ingredients, intermediates, and contract manufactured finished formulation dosages on a global scale.

The proposed combination pertains to the acquisition of approximately 33.38 percent of the issued and paid-up equity voting share capital (on a fully diluted basis) of Unichem Laboratories by Ipca Laboratories, pursuant to a share purchase agreement.

Moreover, since the Acquirer is acquiring more than 25 per cent shareholding in the Target, which is a listed company, the Acquirer is required to make an open offer for the purchase of equity shares up to 26 per cent of the Target’s equity share capital in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Accordingly, through this acquisition Ipca Laboratories will ultimately hold up to 59.38 percent shareholding in Unichem Laboratories (Proposed Combination), making it a significant shareholder in the company.

The Commission approved the proposed combination subject to compliance of undertaking voluntarily submitted by the Parties