 "CCI gives nod to Fortis, Sun Pharma deals")
The Competition Commission of India (CCI) has approved three major combinations.
In a tweet, CCI said it had approved RPG Life Sciences acquiring seven brands of Sun Pharmaceutical Industries. Earlier this year, Sun Pharmaceutical had signed a deal in this regard with RPG, for Rs 41 crore. The move is in line with the company’s strategy to focus on formulations. The acquired brands are primarily in the respiratory and urology segments.
In another tweet, CCI said it had approved the proposed restructuring of Fortis Group, which includes de-merger of the pathology business, SRL Labs. The latter would be merged with Fortis Malar Hospitals and the entity renamed SRL Ltd, to be listed on the National Stock Exchange.
Fortis’ board approved the de-merger in August. Once through, all the group’s diagnostics business would come under the entity which is currently Fortis Malar. The latter’s hospitals business will be sold to Fortis Healthcare. For the composite scheme, Fortis Malar would issue and allot 0.98 fully paid-up equity shares of Rs 10 each for every one equity share of Rs 10 each held by them in Fortis Healthcare.
After the transaction, the promoters will own 40.6 per cent equity in Fortis Malar/SRL. Fortis Healthcare will hold 1.3 per cent and the public 20.8 per cent. The public shareholders in both SRL and Malar, including the private equity investors and other financial institutions, will hold the other 37.3 per cent, according to a company announcement at the time of approving the de-merger.
In a tweet, CCI said it had approved RPG Life Sciences acquiring seven brands of Sun Pharmaceutical Industries. Earlier this year, Sun Pharmaceutical had signed a deal in this regard with RPG, for Rs 41 crore. The move is in line with the company’s strategy to focus on formulations. The acquired brands are primarily in the respiratory and urology segments.
In another tweet, CCI said it had approved the proposed restructuring of Fortis Group, which includes de-merger of the pathology business, SRL Labs. The latter would be merged with Fortis Malar Hospitals and the entity renamed SRL Ltd, to be listed on the National Stock Exchange.
Fortis’ board approved the de-merger in August. Once through, all the group’s diagnostics business would come under the entity which is currently Fortis Malar. The latter’s hospitals business will be sold to Fortis Healthcare. For the composite scheme, Fortis Malar would issue and allot 0.98 fully paid-up equity shares of Rs 10 each for every one equity share of Rs 10 each held by them in Fortis Healthcare.
After the transaction, the promoters will own 40.6 per cent equity in Fortis Malar/SRL. Fortis Healthcare will hold 1.3 per cent and the public 20.8 per cent. The public shareholders in both SRL and Malar, including the private equity investors and other financial institutions, will hold the other 37.3 per cent, according to a company announcement at the time of approving the de-merger.