Cipla's impending 'takeover' by Blackstone should sadden all of us: Jairam Ramesh

Blackstone’s "impending takeover" of Cipla seems to have not gone down well with Senior Congress leader Jairam Ramesh as he took to social media site X to express his 'sadness' over the deal. Sharing a media report on X, Ramesh said the pharma giant is an integral part of the country's political, economic, and social history and its "impending takeover" by Blackstone should sadden everyone.

“It was painful to learn that Blackstone, the world's largest private equity fund, is negotiating to acquire the entire 33.47% promoter stake in Cipla, India's oldest pharmaceutical company. Cipla was established in 1935 by Khwaja Abdul Hamied who was profoundly impacted by Mahatma Gandhi, Nehru Sardar Patel and Maulana Azad. He also played an important role in creating CSIR,” he tweeted.

Read the news here | Blackstone likely to buy out Hamieds stake from Cipla: Reports

“Cipla soon emerged as a shining example of Indian nationalism and his son Yusuf Hamied made Cipla a global supplier of low-cost generic medicines and successfully challenged American, German and British monopolies and patent holders. He paved the way for many other Indian companies to establish themselves in different countries. He is one of the most charming and delightful businessmen I have had the privilege of knowing,” he added.

https://t.co/tScdb3HjJA

It was painful to learn that Blackstone, the world's largest private equity fund, is negotiating to acquire the entire 33.47% promoter stake in Cipla, India's oldest pharmaceutical company. Cipla was established in 1935 by Khwaja Abdul Hamied who was…

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— Jairam Ramesh (@Jairam_Ramesh) August 4, 2023

According to a report by Moneycontrol on July 27, the owners of Cipla, one of India's biggest generics companies, were discussing with top private equity firms about selling a portion of their overall stake in the business. The owners currently possess 33.47% of the shares in the company, and this development is considered to be part of their efforts to plan for the future of the company, according to sources cited by Moneycontrol.

On August 4, The Economic Times, citing people aware of the matter, reported that Blackstone buy out an entire 33.47% promoter stake of the pharma giant. The submission of the non-bidding bid will technically lead to the exit of the Hamied family – who established the company in 1935.

Post the buyout reports, shares of Cipla soared over 6 percent in early trade on August 4 to hit an all-time high and have zoomed 15 percent since the surfacing of the news on July 27.