Nirma announced its intention to acquire a 75% stake in Glenmark Life Sciences in September this year.
The Competition Commission of India (CCI) has given its nod for acquisition of majority shareholding of Glenmark Life Sciences Limited by Nirma Ltd. CCI announced this in a post in platform ‘X’, which was formerly known as Twitter.
In September this year, Nirma had announced that it would acquire 75 per cent stake in Glenmark Life Sciences for ₹7,500 crore. Glenmark Pharmaceuticals had decided to sell the 75 per cent stake to retire outstanding debt of ₹4,340 crore.
The deal values Glenmark Life Sciences at approximately ₹6,700 crore.
✔️ Ahmedabad-based Nirma is known for its detergents, soap, and dishwashing bars. It is also into the manufacturing of industrial products like soda ash, linear alkyl benzene, alfa olefin sulphonates, fatty acid, glycerine, and sulphuric acid.
✔️ Glenmark is engaged in the business of development, manufacture and sale of Active Pharmaceutical Ingredients (“APIs”) and intermediaries and contract development and manufacture organisation (“CDMO”) services for APIs. The pharma major has a portfolio of over 130 APIs serving chronic therapeutic segments like cardiovascular disease, central nervous system disorders, pain management, and anti-diabetics. It has a customer base in 75 countries, as per the CCI filings.
The deal is believed to be of great significance for the Nirma group which has ambitious expansion plans in the Pharma sector. Earlier this year, Nirma acquired Stericon Pharma from the private equity firm InvAscent in March 2023. Stericon specializes in the production of sterile multipurpose contact lens cleaning solutions, as well as sterile eye and nasal formulations.
Within its healthcare portfolio, Nirma currently holds two significant entities: Aculife Healthcare Pvt Ltd and Stericon Pharma Pvt Ltd. Aculife Healthcare is a leading player in the infusion and injectables sector and boasts a state-of-the-art manufacturing facility spanning 550 acres near Ahmedabad. Its global presence extends to over 100 countries, with subsidiary operations in Brazil and Mexico, as well as offices in Vietnam and the Philippines.
Meanwhile, in yet another approval, CCI has green lighted the proposed acquisition of certain business undertakings of Ind Swift Laboratories Ltd and Essix Biosciences Limited by Synthimed Labs Private Limited.
In another deal, the CCI has approved the proposed combination involving the scheme of arrangement inter alios Dhani Services Ltd, Indiabulls Enterprises Limited, India Land Hotels Mumbai Private Limited, India Bulls Pharmcare Ltd Indiabulls and Yaari Digital integrated.
Sources: The Hindu Business Line, CNBC-TV18
