Torrent Pharmaceuticals' Ambitious Acquisition of JB Chemicals Receives Fair Trade Nod

The Competition Commission of India approved Torrent Pharmaceuticals' acquisition of a majority stake in JB Chemicals & Pharmaceuticals with specific modifications. This Rs 19,500-crore deal will make Torrent the second most valued pharma firm in India. The acquisition involves shares from Tau Investment Holdings and JB's employees.

Torrent Pharmaceuticals' planned acquisition of JB Chemicals & Pharmaceuticals has been given the green light by the Competition Commission of India, contingent on voluntary changes offered by both companies. The Rs 19,500-crore deal, announced in June, will position Torrent as India's second most valued pharmaceutical company.

The acquisition involves Torrent purchasing a 46.39% stake from promoters Tau Investment Holdings, an affiliate of global firm KKR, and an additional 2.80% from JB Chemicals' employees. Subsequently, Torrent will launch an open offer for 26% of JB Chemicals' remaining shares, adhering to Sebi regulations.

This acquisition, one of the largest in India's pharmaceutical history, follows significant industry deals, such as Sun Pharmaceutical's purchase of Ranbaxy Laboratories in 2015. The move highlights Torrent's strategy to become a leading player in the pharma sector.

(With inputs from agencies.)