Sun Pharma and Ranbaxy, which had entered into a $4-billion deal in April, have told the Bombay Stock Exchange that they will publish the details of the “proposed combination” within 10 working days. The decision is in compliance of a recent direction of the Competition Commission of India (CCI) asking the companies to make public details of their proposed transaction in a “prescribed format.”
Section 29(2) of the Competition Act 2002 enables the CCI to direct the parties involved in a combination to publish details of the combination within 10 working days, if the CCI prima facie finds that the combination will have an adverse effect on competition.
The disclosure, according to the Act, is for “bringing the combination to the knowledge or information of the public and persons affected or likely to be affected by such combination.”
In April, Sun Pharma had proposed the acquisition of Ranbaxy Laboratories Ltd in an all-stock deal. Sun has got its clearances from the stock exchanges in India and from anti-competition authorities in all applicable markets, excluding India and the US, the company had said. The transaction also needs to get the go-ahead from shareholders of both the companies.