Shares of Sun Pharmaceutical Industries and Ranbaxy Laboratories gained 2.5 percent each intraday on Thursday on news the Sun has formed new leadership team for merged entity.
Taking forward its acquisition of Ranbaxy Laboratories, Sun Pharma has put in place a team of top executives, including Dilip Shanghvi's son Aalok Shanghvi, to lead the businesses of both the organisations.
While the leadership team is comprised mainly from the representatives of Sun Pharma, it also has executives from Ranbaxy, drawing upon expertise, experience and contribution of the chosen leaders from both the organisations.
Aalok would head emerging market businesses, currently under folds of Sun and Ranbaxy, while Sun's India business head Abhay Gandhi will take charge of domestic business of both the companies, sources said.
Kal Sundaram, who is CEO of North America business for Sun Pharma will lead the North American business for both the organisations. He will also continue to be CEO of Taro. The group is looking into a new role for Ranbaxy CEO and MD Arun Sawhney.
The new team becomes effective from the date of merger, the Sun Pharma's official spokesperson said in an e-mailed response. On the role that the current CEO and MD of Ranbaxy Arun Sawhney will have, he said: "An appropriate role is currently being evaluated for Arun".
Sun Pharmaceutical Industries has received most approvals for the USD 4-billion merger deal. Under these agreements, Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each share of Ranbaxy.
However, Competition Commission of India (CCI) has given a conditional approval to the deal and has asked the two companies to divest some key products to address the anti-competitive issues.
The scheme of merger got approval from the Honourable High Court of Punjab & Haryana on March 9. In last month, the US Federal Trade Commission (FTC) had accepted a proposed consent agreement pursuant to which, Sun Pharma and Ranbaxy agreed to divest Ranbaxy’s interests in generic minocycline tablets and capsules to an external third party.
After this deal, Sun Pharma will become the fifth-largest specialty generics company in the world and the largest pharmaceutical company in India.
At 15:01 hours IST, the scrip of Sun Pharmaceutical Industries was quoting at Rs 1,032.50, up Rs 21.80, or 2.16 percent and Ranbaxy Laboratories climbed 2.10 percent to Rs 811.70 on the Bombay Stock Exchange.
(With inputs from PTI)
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