+
Torrent Pharma Seeks CCI Approval for Rs 195 Billion JB Chemicals Deal
ECONOMY & POLICY

Torrent Pharma Seeks CCI Approval for Rs 195 Billion JB Chemicals Deal

Ahmedabad-based Torrent Pharmaceuticals has sought clearance from the Competition Commission of India (CCI) to acquire a majority stake in J B Chemicals and Pharmaceuticals in a Rs 195 billion deal.
Upon completion, Torrent Pharmaceuticals will become India’s second most valuable pharmaceutical company.
The move follows Torrent’s June announcement to acquire a majority stake in J B Chemicals for Rs 195 billion.
“The proposed combination pertains to the acquisition of shareholding by Torrent Pharmaceuticals Ltd in J B Chemicals & Pharmaceuticals Ltd, followed by the merger of the target with the acquirer,” stated a notice filed with the CCI.
Torrent Pharmaceuticals, the flagship company of the Torrent Group, manufactures and sells pharmaceutical formulations across multiple therapeutic segments.
J B Chemicals & Pharmaceuticals is involved in manufacturing and marketing a wide range of formulations and active pharmaceutical ingredients (APIs), and also provides contract development and manufacturing organisation (CDMO) services.
The companies acknowledged horizontal overlaps in certain markets related to the manufacture and sale of pharmaceutical formulations in India.
In June, Torrent agreed to acquire 46.39 per cent stake from promoters Tau Investment Holdings Pte Ltd, an affiliate of global investment firm KKR, for around Rs 119.17 billion. Additionally, it will buy a further 2.80 per cent stake from certain JB Chemicals employees at Rs 1,600 per share, amounting to Rs 7.19 billion.
Following these purchases, Torrent will launch an open offer to acquire 26 per cent from the open market at Rs 1,639.18 per share, totalling Rs 68.43 billion, as per stock exchange norms.
This will be the second largest deal in the Indian pharmaceutical sector, after Sun Pharmaceutical Industries’ 2015 acquisition of Ranbaxy Laboratories. After the share purchase, JB Chemicals will merge into Torrent.
KKR had initially acquired a 65 per cent stake in JB Chemicals in 2020. Earlier this year, in March, KKR divested 5.8 per cent of its stake in JB Chemicals for Rs 14.6 billion via open market transactions.
Founded in 1976, JB Chemicals produces pharmaceuticals in areas including gastroenterology, dermatology and diabetes.
Torrent Pharmaceuticals, with annual revenues exceeding Rs 115 billion, is the flagship company of the Torrent Group, which generates group revenues of Rs 450 billion.
In a comparable major transaction, Sun Pharma announced in April 2014 its plan to acquire rival Ranbaxy for USD 4 billion in an all-stock deal, including USD 800 million in debt. The merger was completed after receiving regulatory approvals in March 2015.
Another significant recent deal saw Mankind Pharma acquire Bharat Serums and Vaccines last year for Rs 138 billion. 

Ahmedabad-based Torrent Pharmaceuticals has sought clearance from the Competition Commission of India (CCI) to acquire a majority stake in J B Chemicals and Pharmaceuticals in a Rs 195 billion deal.Upon completion, Torrent Pharmaceuticals will become India’s second most valuable pharmaceutical company.The move follows Torrent’s June announcement to acquire a majority stake in J B Chemicals for Rs 195 billion.“The proposed combination pertains to the acquisition of shareholding by Torrent Pharmaceuticals Ltd in J B Chemicals & Pharmaceuticals Ltd, followed by the merger of the target with the acquirer,” stated a notice filed with the CCI.Torrent Pharmaceuticals, the flagship company of the Torrent Group, manufactures and sells pharmaceutical formulations across multiple therapeutic segments.J B Chemicals & Pharmaceuticals is involved in manufacturing and marketing a wide range of formulations and active pharmaceutical ingredients (APIs), and also provides contract development and manufacturing organisation (CDMO) services.The companies acknowledged horizontal overlaps in certain markets related to the manufacture and sale of pharmaceutical formulations in India.In June, Torrent agreed to acquire 46.39 per cent stake from promoters Tau Investment Holdings Pte Ltd, an affiliate of global investment firm KKR, for around Rs 119.17 billion. Additionally, it will buy a further 2.80 per cent stake from certain JB Chemicals employees at Rs 1,600 per share, amounting to Rs 7.19 billion.Following these purchases, Torrent will launch an open offer to acquire 26 per cent from the open market at Rs 1,639.18 per share, totalling Rs 68.43 billion, as per stock exchange norms.This will be the second largest deal in the Indian pharmaceutical sector, after Sun Pharmaceutical Industries’ 2015 acquisition of Ranbaxy Laboratories. After the share purchase, JB Chemicals will merge into Torrent.KKR had initially acquired a 65 per cent stake in JB Chemicals in 2020. Earlier this year, in March, KKR divested 5.8 per cent of its stake in JB Chemicals for Rs 14.6 billion via open market transactions.Founded in 1976, JB Chemicals produces pharmaceuticals in areas including gastroenterology, dermatology and diabetes.Torrent Pharmaceuticals, with annual revenues exceeding Rs 115 billion, is the flagship company of the Torrent Group, which generates group revenues of Rs 450 billion.In a comparable major transaction, Sun Pharma announced in April 2014 its plan to acquire rival Ranbaxy for USD 4 billion in an all-stock deal, including USD 800 million in debt. The merger was completed after receiving regulatory approvals in March 2015.Another significant recent deal saw Mankind Pharma acquire Bharat Serums and Vaccines last year for Rs 138 billion. 

Next Story
Infrastructure Transport

Syama Prasad Mookerjee Port Partners to Redevelop Nimtala Ghat

Kolkata: Syama Prasad Mookerjee Port, Kolkata (SMPK), signed a Memorandum of Understanding (MoU) on Tuesday with PS Group Realty Private Limited to redevelop and beautify Nimtala Ghat as part of PS Group’s Corporate Social Responsibility (CSR) initiative.The agreement was formalised at SMPK’s Head Office at 15, Strand Road, in the presence of SMPK chairman Rathendra Raman, deputy chairman Samrat Rahi, PS Group directors Saurav Dugar, Gaurav Dugar, Arun Sancheti, and senior SMPK officials.Under the MoU, PS Group will undertake the full redevelopment and permitted construction of Nimtala Imm..

Next Story
Infrastructure Urban

CSIR-NCL and Covestro Collaborate to Upcycle Polyurethane Waste

In a move towards sustainable plastic waste management, Pune-based CSIR-National Chemical Laboratory (CSIR-NCL) signed a Memorandum of Understanding (MoU) with Covestro (India) Private Limited on Wednesday to develop innovative upcycling technologies for polyurethane waste.Polyurethane is notoriously difficult to recycle, with current methods often proving inefficient, costly, and environmentally harmful. This collaboration aims to address existing challenges, including high energy usage and deterioration of material quality during recycling.Ashish Lele, director of CSIR-NCL, stated, “This p..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?