Egypt’s Competition Authority has approved the merger of India’s Sun Pharma and US-based Organon.
Egypt’s Competition Authority (ECA) has approved the merger of Indian pharmaceutical company Sun Pharma Inc. into US-based Organon & Co. The transaction was reviewed as part of the authority’s oversight of economic concentrations and assessment of their potential impact on competition in the Egyptian market.
The deal, first announced in April this year, could propel Sun Pharma into the ranks of the world’s 25 largest pharmaceutical companies.
Sun Pharma will acquire all outstanding Organon shares for $14 per share, valuing the transaction at approximately $11.75 billion.
Organon was spun off from pharmaceutical group MSD (Merck & Co. in the US and Canada) in 2021 and specializes in women’s health medicines. The company’s portfolio includes more than 70 brands sold in over 140 countries. Its key markets are the US, Europe, China, Canada and Brazil. Organon’s products are manufactured at six plants located in the European Union and emerging markets.
For Sun Pharma, India’s largest generic drugmaker, the deal with Organon opens several avenues for growth. Once completed, the combined company is expected to generate more than $12 billion in annual revenue. The combined group could also rank among the top three players in the global women’s health medicines market and become one of the seven largest companies in the biosimilars segment. The acquisition will also strengthen Sun Pharma’s presence in China, Brazil and other markets where the Indian company has so far had a relatively limited presence.
The approval is part of the ECA’s mandate to review economic concentrations that may affect competition in the Egyptian market. The authority’s review process covers transactions that meet applicable thresholds and seeks to identify potential competition concerns arising from changes in ownership or control.
Sources: Daily News Egypt, Pharmvestnik
