The Telegraph
Thursday , April 10 , 2014
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CCI clears Torrent acquisition

New Delhi, April 9 (PTI): The Competition Commission of India (CCI) has approved Torrent Pharma’s proposed Rs 2,000-crore acquisition of Elder Pharma’s formulations business in India and Nepal, saying the deal will not limit competition.

The deal will help generic medicine maker Torrent enter new categories and expand in segments such as women’s healthcare and pain management.

In an order released today, the fair trade regulator said, “The proposed combination is not likely to have an appreciable adverse effect on competition in India.”

The CCI observed that in most of the therapeutic categories, the combined market share of both the companies “is not significant enough to raise any competition concern”. The commission also noted that both Elder and Torrent were engaged in the production and sale of generic medicines wherein “entry is relatively easier”.

“It is further observed that the prices of the medicines are regulated/monitored by the National Pharmaceutical Pricing Authority in accordance with applicable rules and regulations,” the CCI added.

According to the order, the business to be acquired by Torrent comprises approximately 30 brands across segments of women’s healthcare, nutraceuticals and pain & wound management.

The manufacturing know-how and the intellectual property associated with the business would also be transferred to Torrent under the deal.