Competition Commission has given its green signal to the proposed 11 per cent stake sale in Mankind Pharma to two Mauritius-based private equity investors.
Approving the deal, the fair trade regulator said the transaction is not likely to have any appreciable adverse effect on competition in India.
Cairnhill CIPEF Ltd (CCL) and Cairnhill CGPE Ltd (CGL) would acquire 11 per cent shareholding in the pharma company by acquiring stakes from Monet Ltd and one Dinaz Kaul.
CCL and CGL are private equity investors managed and advised by the Capital Group, a foreign institutional investor in India.
Mankind is into the business of manufacturing and trading of pharmaceutical and healthcare products.
Citing details provided by the two private equity players, Competition Commission of India (CCI) said neither they nor the funds managed and advised by Capital Group hold any investments in pharmaceutical sector in the country.
"Thus, there is no horizontal overlap between investors and the target (Mankind). Further, since the investors do not have any investment in pharmaceutical sector in India, there is no possibility of any vertical foreclosure resulting from the proposed combination," CCI said in its order dated June 25 and made public today.
