The Competition Commission of India has reportedly stepped up scrutiny of the proposed merger between Sun Pharmaceutical Industries and Ranbaxy Laboratories.
The CCI is said to have approached the companies asking they the authority shouldn’t launch an investigation; the regulator also reportedly said the merger would result in significant market strength by one company and could affect the costs of crucial drugs within India.
The CCI issued a show-cause notice to each of the companies, according to unnamed officials at the antitrust watchdog. According to reports, the notices mark the first-ever instance that the CCI has referenced national interest to question a proposed merger.
The $3.2 billion merger will need to secure approval by the CCI, various Indian courts, and the Securities and Exchange Board of India.
Full content: Live Mint
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