The Competition Commission of India (CCI) approves the proposed combination involving acquisition of shareholding up to 59.38 Percent of Unichem Laboratories Ltd. by Ipca Laboratories Ltd.

Ipca Laboratories is a pharmaceutical company that manufactures formulations and active pharmaceutical ingredients for various therapeutic segments.

Unichem Laboratories Limited is active in the sale of formulations, active pharmaceutical ingredients, intermediates, and contract manufactured finished formulation dosages, globally.

The proposed combination pertains to proposed acquisition of ~33.38 percent of the issued and paid-up equity voting share capital (on a fully diluted basis) of the Target by the Acquirer pursuant to a share purchase agreement. Further, since the Acquirer is acquiring >25 percent shareholding in the Target, which is a listed company, the Acquirer is required to make an open offer for the purchase of equity shares up to 26 percent of the Target’s equity share capital in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Accordingly, the Acquirer will acquire up to 59.38 percent shareholding of the Target (Proposed Combination).

The CCI approved the proposed combination subject to compliance of undertaking voluntarily submitted by the Parties.