The proposed acquisition of a Strides Arcolab subsidiary by Mylan Inc has got a green signal from the Competition Commission of India.
The nod comes after these entities modified certain aspects of non-compete pact which was part of the deal.
As per the information given in the notice, the proposed combination relates to the acquisition of the entire issued and outstanding share capital of Agila Specialties Pvt Ltd by Mylan, directly or through one of its subsidiaries, wholly or substantially owned, directly or indirectly, by Mylan, pursuant to the SPA.
It has also been stated in the notice that Mylan has also entered into a separate sale and purchase agreement with Agila Specialties Asia Pte Ltd, a company incorporated in Singapore, and certain shareholders of SAL, pursuant to which Mylan will purchase the entire issued and outstanding share capital of Agila Specialties Global.
The agreement was entered between Mylan, Strides Arcolab and its two promoter entities Arun Kumar and Pronomz Ventures LLP in February this year.
As per that pact, Strides Arcolab and its promoters were not to engage in “the business of developing, manufacturing, distributing, marketing or selling any injectable, parenteral, ophthalmic or oncology pharmaceutical products for human use, anywhere in the world”.
The commission had observed that the “non-compete covenant” should have covered only those products which are either being made or sold or are under development by Agila and Onco.