Fair trade regulator CCI has approved the Japan-based Meiji Holdings acquisition of Indian pharmaceutical firm Medreich Ltd, saying the deal will not raise any adverse impact on competition in the country.
As per the proposed deal, Medreich would be acquired by Meiji Seika Pharma Co, a subsidiary of Meiji Holdings.
In an order released today, the Competition Commission of India (CCI) said that "the proposed combination is not likely to have an appreciable adverse effect on competition in India".
The fair trade watchdog noted that Meiji Seika had "negligible sales of pharmaceutical products in India in the last three financial years and none of the products exported by Meiji Seika to India during this period were supplied to Medreich or any of its subsidiaries".
Further, CCI said raw materials sourced by Meiji Seika from India are not been supplied by Medreich or any of its arms in the the last 10 years.
It also noted that Meiji Holdings' subsidiary in India -- Meiji India -- is not engaged in the food business and does not operate any pharmaceutical business in the country.
"None of the parties to the combination is stated to be currently engaged in any activity that is vertically related to the activity carried on by the other party in India," it said.
"Further, Medriech is primarily an exporter of pharmaceutical products and around eighty per cent of its revenue accrue from the exports and the rest from the domestic sales," it added.
The deal was entered between the companies on June 11, this year, following which Meiji Seika had approached CCI for its approval.
