Daiichi Sankyo to take control of Ranbaxy

Generics producer Ranbaxy Laboratories and Daiichi Sankyo, one of the largest pharmaceutical companies in Japan, have agreed a Share Purchase and Share Subscription Agreement that mean Ranbaxy becomes a subsidiary of Daiichi.

Daiichi Sankyo will acquire the entire shareholding of the Singh family, the largest and controlling shareholders of Ranbaxy, and will seek to acquire the majority of the voting capital of Ranbaxy at a price of Rs737 per share with the total transaction value expected to be between US$3.4 to US$4.6 bn. The transaction would value Ranbaxy at US$8.5 bn.

Malvinder Singh will continue to lead the company as its ceo and md while additionally assuming the position of chairman of the board, upon closure.

Daiichi Sankyo and Ranbaxy believe this transaction will create significant long-term value for all stakeholders through strong growth potential and optimisation of r&d and manufacturing facilities of both companies, especially in India.

Takashi Shoda, president and ceo of Daiichi Sankyo, said: "The proposed transaction is in line with our goal to be a Global Pharma Innovator and provides the opportunity to complement our strong presence in innovation with a new, strong presence in the fast growing business of non-proprietary pharmaceuticals."

The SPSSA has been unanimously approved by the Boards of Directors of both companies.The closing of the transactions is subject to approval of shareholders of Ranbaxy and customary regulatory and statutory approvals. The acquisition is expected to be completed by the end of March, 2009. Upon completion of the transaction, Ranbaxy is expected to become a subsidiary of Daiichi Sankyo.Generic producer Ranbaxy Laboratories and Daiichi Sankyo, one of the largest pharmaceutical companies in Japan, have agreed a Share Purchase and Share Subscription Agreement.