Competition Commission gives approval to Piramal Pharma, Carlyle Group deal

Business
Typography

In June this year, Carlyle picked up a 20 percent stake in Piramal Enterprises subsidiary Piramal Pharma for $490 million

The Competition Commission of India (CCI) has given its nod to the proposed combination involving acquisition of 20 percent of the issued and paid-up equity share capital of Ajay Piramal-led Piramal Pharma Ltd by the arm of the US-based global investment firm Carlyle Group.

The transfer of equity will take place through Carlyle Group’s special purpose vehicle (SPV) CA Clover Intermediate II Investments (Curie), the regulator said.

The proposed combination relates to the transfer of global pharmaceutical business (transferred business) by Piramal Enterprises (PEL) to a wholly owned subsidiary of PEL, i.e. Pharma Co, followed by and the acquisition of 20 percent of the issued and paid-up equity share capital of Pharma Co by Curie (proposed combination).

In June this year, Piramal group in a regulatory filing had informed that Carlyle picked up a 20 percent stake in Piramal Enterprises subsidiary Piramal Pharma for $490 million (about Rs 3,700 crore).

The deal valued PEL’s pharma business at about Rs 20,000 crore.

The Carlyle Group is a global alternative asset manager, which manages funds that invest globally across four investment disciplines namely corporate private equity, real assets, global credit and solutions.

Pharma Co is a wholly owned entity of PEL that will hold PEL’s transferred business as part of the p combination, and acquire the pharmaceutical business of PEL comprising the Contract Development and Manufacturing Organisation (CDMO), Complex Hospital Generics (CHG), and Consumer Healthcare Division (CHD)segments, as well as equity interest in certain PEL entities.

Image credit: Pharamaceutical Daily

All Comments