SUN-RANBAXY @ CCI: 1st Structural Remedy!

Written By Unknown on Minggu, 14 Desember 2014 | 08.10

Published on Sat, Dec 13,2014 | 20:41, Updated at Sat, Dec 13 at 20:41Source : CNBC-TV18 |   Watch Video :

It's the first time that India's competition regulator has ordered the sale of certain assets before approving a merger. CCI gave the 4 billion dollar Sun-Ranbaxy deal conditional approval. The 2 companies must sell certain select products identified by the CCI, before the merger can take place. This CCI order will set precedent for other such deals in India and hence today we are going to examine what it says and what means. First. here's a brief look at the highlights of the order.

Sun and Ranbaxy are both leading generic pharmaceutical players with most of their revenue from international sales. The CCI examined how a merger between the 2 would impact the Indian pharma market. To do so, it first defined relevant product market based on the molecule. Thereafter CCI examined 51 molecules or relevant markets where the combination would have a more than 15% market share. it found that in 7, the combined entity will have an adverse impact on competition. This determination was made not just on the basis of the market share of the merged entity but also taking into account the market share of competitors and number of significant players in the relevant market. For instance, in one of the 7 molecules, the merged entity's share adds up to just 40—45%, less than half the market. But there are only 2 other significant competitors and one of them has seen market share decline over the last 4 years. Based on this analysis, Ranbaxy has been asked to sell its product based on this molecule, before the merger is consummated. In total, Ranbaxy is to sell 5 products and Sun 2.

How will this CCI order impact future deals? To discuss that, CNBC-TV18's Menaka Doshi spoke to Amitabh Kumar of JSA and Samir Gandhi of AZB.


Anda sedang membaca artikel tentang

SUN-RANBAXY @ CCI: 1st Structural Remedy!

Dengan url

http://efektifkesehatan.blogspot.com/2014/12/sun-ranbaxy-cci-1st-structural-remedy.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

SUN-RANBAXY @ CCI: 1st Structural Remedy!

namun jangan lupa untuk meletakkan link

SUN-RANBAXY @ CCI: 1st Structural Remedy!

sebagai sumbernya

0 komentar:

Posting Komentar

techieblogger.com Techie Blogger Techie Blogger