The singh family has sold off its remaining stake in ranbaxy laboratories ltd, thus ceasing to be the promoters of one of indias largest pharmaceutical firms. It had a vision to be in the top 5 global generic pharma company by 2012. Rs737 per share same price among four methods below. Ranbaxy will be delisted from the indian stock exchanges. Sun of the voting securities of respondent ranbaxy laboratories ltd. Ranbaxy daiichi mergers and acquisitions valuation finance. Daiichi files a petition before the andhra pradesh high court requesting it to. After the buyout of the founding family in the company ranbaxy, daiichi sankyo made part time offer to acquire the remaining shares of ranbaxy. Daiichi sankyo, japans second largest pharmaceutical company, announced on june 11 that it will buy a majority stake in new delhibased ranbaxy laboratories, one of. Daiichis acquisition of ranbaxy strategy case study.
Japanese pharma daiichi sankyo has successfully completed its acquisition deal with indian generic manufacturer ranbaxy. The acquisition of ranbaxy by daiichi represents a major entry for the japanese firm into the high growth business areas of generic drug. Daiichi sankyo, unable to remedy chronic regulatory problems at indian generics maker ranbaxy laboratories, is selling its controlling stake in the company amid. Subsidiary ranbaxy and resulting change in subsidiary. Daiichi sankyo cashing out after merging ranbaxy with sun. The federal trade commission commission, having initiated an investigation of the proposed acquisition by respondent sun pharmaceutical industries ltd. Daiichi sankyo to buy ranbaxy june 16, 2008 issue vol. The coming together of ranbaxy and daiichi sankyo is a. Daiichi sankyo co ltd, japan holds approximately 63. Synergies considering that ranbaxy is a generics company and daiichi sankyo an innovator company, both the businesses complement each other with negligible overlap. The company owns the american biotechnology company plexxikon, the german biotechnology company u3 pharma. Daiichi sankyo, japans second largest pharmaceutical company, announced on june 11 that it will buy a majority stake in new delhibased ranbaxy laboratories, one of the worlds largest generic. Dis announced its plan to record a noncash valuation loss. In november 2008, daiichi sankyo completed the acquisition of 63.
Acquisition of majority interest in ranbaxy laboratories. The company is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 49 countries and manufacturing operations in 11 countries. Ranbaxy acquisition by daiichi sankyo case study help. Ranbaxy acquisition by daiichi sankyo case study solution, ranbaxy acquisition by daiichi sankyo case study analysis, subjects covered finance by rama seth, p. Individually, the two pharmaceutical giants are formidable one, indias largest generics company and the other, among the largest innovator.
Daiichi sankyo chairman takashi shoda, who led its ranbaxy. The deal financing was through a mix of debt and existing cash resources of daiichi sankyo. Daiichi sankyo and ranbaxy complete acquisition deal. The purchase price of inr737 represented a premium of 53. Ranbaxy the largest pharma company in india was itsel. The uncertainty as to whether or not the deal would go through and what the eventual acceptance rate would be resulted in a special situation investment opportunity. Daiichi sankyo chairman takashi shoda, the man who led the japanese drug makers troubled acquisition of indian generics company ranbaxy laboratories in 2008, is stepping down.
Ranbaxy and daiichi sankyo deal pdf the announcement of acquisition of ranbaxy by daiichi sankyo in june 2008 was a big surprise in india. At the same time, the president and chief executive officer daiichi sankyo. Daiichi sankyo to become the second largest shareholder in sun pharma. Ranbaxy slumps after daiichi sankyo says was misled reuters. After the purchase of ranbaxy founder of the family stake in the company, daiichi sankyo made a partial tender offer bid for the remaining shares of ranbaxy.
Acquisition of ranbaxy by daichii linkedin slideshare. Aggregate amount of the purchase will be rs147 to 198 billion. Scribd is the worlds largest social reading and publishing site. Daiichi, on november 7, 2008, it would be interesting to analyze the key legal and tax issues that arose from the beginning till the completion of this landmark deal. On 30072008, the commission received notification of a proposed concentration pursuant. Ranbaxy the largest pharma company in india was itself growing through acquisition. Ranbaxy under sections 3994 and other applicable provisions of the companies act, 1956 and the companies act, 20 b transaction agreement executed between the parties on 06. Daiichi, on november 7, 2008, it would be interesting to analyze the key legal and tax issues that arose from the beginning till the completion of this landmark. Ranbaxy daiichi free download as powerpoint presentation.
Sun pharma announces closure of merger deal with ranbaxy. Tokyojapanese pharmaceutical company daiichi sankyo co. The coming together of ranbaxy and daiichi sankyo is a pathbreaking confluence that, in one sweep, catapults the new, empowered entity to the status of the worlds 15th largest pharmaceutical company. Ranbaxy acquisition by daiichi sankyo case study help case. Daiichi sankyo has agreed with ranbaxy s promoters and ranbaxy to acquire a majority of the outstanding shares of ranbaxy on a posttransaction basis price. Daiichi sankyo to end 6year ranbaxy debacle with sale. Ranbaxy acquisition by daiichi sankyo case analysis. Dear all, with the completion of acquisition of 63. Daiichi sankyo to buy control of ranbaxy of india for up. Dis announced its plan to record a noncash valuation loss of. Merger between sun pharma and daiichi sankyos ranbaxy. Pursuant to which sun pharma will acquire 100 of ranbaxy in. Purpose the purpose of this paper is to examine the rationale and synergies of a japanese firms acquisition of indias leading pharmaceutical firm, ranbaxy, and to answer the following pertinent questions.
This case is a trading situation arising from the acquisition of ranbaxy laboratories limited, an indian pharmaceutical company to daiichi sankyo, inc, a japanese pharmaceutical company in 2008. Ranbaxy is a subsidiary of daiichi sankyo company, ltd. Daiichi sankyo on its part, has faced a rocky road in india since 2008 when it entered the market with a bang taking control of ranbaxy from the billionaire brothers malvinder and shivinder singh. Daiichi sankyo ranbaxy laboratories only the english text is available and authentic. Daiichi sankyo is retaining us copromotion right of the roche licensed drug. Daiichi sankyo takes control of ranbaxy financial times. A singapore arbitration tribunal had asked the singh brothers to pay rs 2,562 crore to daiichi sankyo in 2016 to settle a dispute that arose after the japanese company. On april 7, 2014, daiichi sankyo announced that it has agreed to vote its shares in ranbaxy in favor of sun pharmas acquisition of 100% of ranbaxy through the merger process which entails a share swap. Daiichi sankyo, sun pharma and ranbaxy reached agreement on the exchange ratio of 0.
Postmerger, daiichi sankyo becomes the second largest shareholder in sun pharma and both companies will work together to leverage this relationship for global business growth. Will suns latest acquisition, and indias first peertopeer pharma. Pursuant to the agreement entered into by daiichi to acquire controlling stake, an open offer to acquire upto 20% of the paid up capital of ranbaxy was made by daiichi to the shareholders of ranbaxy. Ranbaxy daiichi sankyo deal daiichi sankyo, the japanese pharmaceuticals company, has acquired 52. The uncertainty about whether the deal would go through and what the subsequent acceptance would be done in a special situation investment opportunity. Ranbaxy daiichi deal pdf the announcement of acquisition of ranbaxy by daiichi sankyo in june 2008 was a big surprise in india. Ranbaxy acquisition by daiichi sankyo case analysis, ranbaxy acquisition by daiichi sankyo case study solution, ranbaxy acquisition by daiichi sankyo xls file, ranbaxy acquisition by daiichi sankyo excel file, subjects covered finance by rama seth, p. Shares in ranbaxy laboratories ltd fell as much as 10.
What it got instead was nonstop regulatory issues with the fda, which started shortly after daiichi. The calculation methods employed by walker were generally accepted methods like discounted cash flow dcf analysis. The announcement of acquisition of ranbaxy by daiichi sankyo in june 2008 was a big surprise in india. The former owners of indian pharmaceutical company ranbaxy laboratories ltd. Richard ivey school of business foundation 12 pages. The integrated culture theme, growing together, represents the core objective of this merger focusing. The acquisition shows that global pharma companies are making efforts to cope up with strong generic drug makers. Daiichi sankyo a japanbased innovator company was acquiring a generic company. Daiichi sankyo is a leading global pharma innovator, headquartered in tokyo, japan. Ranbaxy acquisition by daiichi sankyo authorstream. This case daiichis acquisition of ranbaxy focus on daiichi sankyo announced, its strategic deal to acquire majority stake in the indian generic drug major, ranbaxy laboratories limited. The current global business environment is under significant.
Jun 11, 2008 ranbaxy to bring in daiichi sankyo company limited as majority partner strategic combination creates innovator and generic pharma powerhouse 11 june 2008, new delhi and tokyo highlights. The 65yearold will take on the role of senior corporate adviser at the company, daiichi said. Ranbaxy acquisition by daiichi sankyo case solution and. Daiichi sankyo completes acquisition of ranbaxy labs. Jun 11, 2008 tokyojapanese pharmaceutical company daiichi sankyo co. Final ma ranbaxy and daiichi sankyo free download as powerpoint presentation. Daiichi will retain its existing business partnerships with sun, but the move marks the end of the japanese firms financial involvement, which began.
Daiichi sankyo, unable to remedy chronic regulatory problems at indian generics maker ranbaxy laboratories, is selling its controlling stake in the company amid heightened u. Japanese firm daiichi sankyo has sold off its entire stake in indias sun pharmaceuticals, following suns takeover of indian rival ranbaxy, in which daiichi was the controlling shareholder daiichi will retain its existing business partnerships with sun, but the move marks the end of the japanese firms financial involvement, which began when it took control of ranbaxy in 2008. Regulation ec no 92004 merger procedure article 61b nonopposition date. With this, japanese pharma major daiichi sankyo has completed its acquisition of ranbaxy, now holding a 63.
Pdf japanese acquisition in indias ranbaxy justin paul and. Daiichi sankyo kabushikigaisha is a global pharmaceutical company and the secondlargest pharmaceutical company in japan. Daiichi sankyo steps out after sunranbaxy merger business. Malvinder singh agreed to remain as ceo of ranbaxy for five years following daiichi. Japanese firm daiichi sankyo has sold off its entire stake in indias sun pharmaceuticals, following suns takeover of indian rival ranbaxy, in which daiichi was the controlling shareholder. Proposed respondent daiichi sankyo is a corporation organized, existing, and doing business under and by virtue of the laws of japan with its headquarters located at 351, nihonbashihoncho, chuoku, tokyo 1038426, japan. Feb 03, 2012 synergies considering that ranbaxy is a generics company and daiichi sankyo an innovator company, both the businesses complement each other with negligible overlap. On 11th june 2008, daiichi sankyo the third largest pharmaceutical company in japan made an offer to buy control stake in ranbaxy, the largest drugmaker by revenue in india. Kurosawa, the head of pharma at romura fund, was stunned by the announcement of daiichi sankyo dis of 5th january 2009. Shoda was daiichis chief executive when it bought a controlling stake. Daiichi sankyo to launch innovator products in mexico through ranbaxy companies to fully leverage the synergistic power of the hybrid business model 2010. Nov, 2008 dear all, with the completion of acquisition of 63.
Meanwhile, at the top levels, daiichi sankyos management did not seem to. With the acquisition daiichi got access to ranbaxys basket of 30 drugs for which the company had approvals in the us, including 10 drugs for which ranbaxy had exclusive sales right to sell for six months after the expiry of their patents. Takeda wasnt the only japanese drugmaker to ink a billiondollar deal. Jun 04, 2014 daiichi sankyo, sun pharma and ranbaxy reached agreement on the exchange ratio of 0. After buying out the ranbaxys founding familys stake in the company, daiichi sankyo made a partial tender offer bid for the remaining shares of ranbaxy.
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