CCI Clears Torrent Pharma’s Acquisition of JB Chemicals with Voluntary Modifications

The Competition Commission of India on Tuesday approved Torrent Pharmaceuticals Ltd’s proposed acquisition of a stake in JB Chemicals & Pharmaceuticals Ltd., subject to voluntary modifications offered by both companies.

According to the CCI, the approval is contingent on compliance with the voluntary changes suggested by the two companies. Torrent Pharma, the flagship firm of the Torrent Group, manufactures and sells pharmaceutical formulations across therapeutic categories, while JB Chemicals produces and markets formulations, active pharmaceutical ingredients, and contract development and manufacturing services.

In June, Torrent agreed to buy a 46.39% stake in JB Chemicals from Tau Investment Holdings Pte Ltd., an affiliate of KKR, for about ₹119.17 billion, and another 2.80% from certain employees for around ₹7.19 billion. It will also make an open offer for an additional 26% stake worth ₹68.42 billion in line with Sebi’s listing regulations.

The transaction marks the second-largest deal in India’s pharmaceutical sector, behind Sun Pharmaceutical Industries’ 2015 acquisition of Ranbaxy Laboratories. Post-acquisition, JB Chemicals will be merged into Torrent Pharmaceuticals.

In a separate decision, the CCI also approved the acquisition of up to 15% shareholding in Edelweiss Asset Management Ltd. and Edelweiss Trusteeship Company Ltd. by Setu AIF Trust, Konark Trust, and MMPL Trust.