Merck falls 14% in two days after CCI nod for acquisition by P&G

The stock locked in the lower circuit for the second straight day, down 5% at Rs 3,064 on the BSE.

Shares of Merck were locked in the lower circuit for the second straight day, down 5% at Rs 3,064 per share on the BSE, after the Competition Commission of India (CCI) approved the acquisition of 51.8% stake in the company by Procter and Gamble Overseas.

The stock has fallen 14% from its all-time high of Rs 3,549 recorded on Tuesday, September 3, 2018, on the BSE in intra-day trade. Till 11:49 am; a combined 42,423 equity shares changed hands and there were pending sell orders for 9,417 shares on the NSE and BSE.

“The Competition Commission of India has approved the proposed acquisition by Procter & Gamble Overseas India BV of 51.8% equity share capital of the company," Merck said in a press release to the exchanges on Tuesday.

"An approval has also been granted for the proposed transfer of the non-consumer health business of the company to Merck Life Science or any of its affiliates on a going concern basis by way of slump sale," the drug company added.

Since April 19, 2018, the stock of Merck zoomed 133% from Rs 1,510 after the Procter & Gamble Overseas India made a mandatory open offer to acquire 26% stake in the company at price of Rs 1,500.36 per share.