The big-ticket Sun Pharmaceutical- Ranbaxy Laboratories and Holcim-Lafarge deals, which would create pharma and cement behemoths respectively, are likely to face intense regulatory scrutiny in India, especially from Sebi and Competition Commission.
The deals, among the biggest announced so far in 2014, would face intense scrutiny, especially in the context of corporate governance, protecting interests of minority shareholders and overall impact on the competition scenario in the domestic market, sources said.
Sun Pharmaceutical Industries announced on Monday that it would acquire troubled rival Ranbaxy Laboratories in a USD 4-billion deal that includes USD 800 million debt.
The same day Swiss major Holcim unveiled the proposed Lafarge merger deal that would create one of the world's biggest cement makers. Both the entities have presence in India.
The Securities and Exchange Board of India (Sebi) would be closely looking at the Sun Pharma-Ranbaxy deal to ensure compliance with stringent norms that are in place for listed entities.
Among others, the focus would be on protecting the interest of minority shareholders and compliance with 75 per cent minimum public shareholding norms for listed companies, sources said.
Sources also said that Sebi is already planning to look into the possibility of insider trading activities in the run-up to the deal announcement on Monday as both scrips had witnessed substantial movements last week.
Besides, the Competition Commission of India (CCI) would have a detailed look at Sun Pharma-Ranbaxy deal as it would create the country's largest pharmaceutical company.
CCI is also is expected to have a deeper look at Holcim-Lafarge deal.
Both deals also come at a time when the fair trade watchdog has been strengthening its efforts to ensure that enterprises, across sectors, comply with competition norms.
