The approval is subject to voluntary modifications offered by both companies involved in the transaction.
Torrent Pharma had announced in June that it would acquire a 46.39% stake in JB Chemicals from its promoters, Tau Investment Holdings Pte Ltd, an affiliate of global private equity major KKR, for Rs 11,917 crore.
In addition, it planned to purchase another 2.80% stake from certain JB Chemicals employees for around Rs 719 crore. The company will also make an open offer to acquire a further 26% stake, as required under SEBI listing norms, amounting to Rs 6,842.8 crore.
The total deal size is estimated at Rs 19,500 crore, making it the second-largest acquisition in India’s pharmaceutical sector, after Sun Pharma’s 2015 acquisition of Ranbaxy Laboratories.
According to CCI, the acquisition involves the shareholding in JB Chemicals, followed by its amalgamation into Torrent Pharma. Upon completion, Torrent is expected to become India’s second-most valued pharma company.Torrent Pharmaceuticals is the flagship entity of the Torrent Group, with annual revenues exceeding Rs 11,500 crore and total group revenues of Rs 45,000 crore. It operates across various therapeutic segments, manufacturing and selling pharmaceutical formulations (FDFs).JB Chemicals, meanwhile, specializes in FDFs, active pharmaceutical ingredients (APIs), and contract development and manufacturing organization (CDMO) services.
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