Overruling the concerns raised by Department of Industrial Policy and Promotion (DIPP) and Ministry of Health, Prime Minister Manmohan Singh has cleared US-based Mylan Inc’s $1.6-billion (Rs 9,920 crore) for Strides Arcolab's subsidiaries. Post this approval, Strides Arcolab’s specialties subsidiary, Agila Specialties and its overseas arm Agila Specialties Asia, are now a part of the US-based Mylan Inc.
The Foreign Investment Promotion Board (FIPB) had kept its approval on the deal in abeyance untill there was clarity on “brownfield” foreign direct investment (FDI) norms- solely because the buyout was built in as a new project proposa. With this, the deal will be now brought to the Cabinet Committee on Economic Affairs (CCEA) under existing policy, to get the final approval.
It was in February this year, Strides Arcolab inked definitive agreement with Nasdaq listed Mylan Inc for the sale of its specialties subsidiary. As per the pact, Strides along with its subsidiary will receive a consideration of $1,600 million in cash on closing. Further, a potential additional sum of up to $250 million too would be received subject to the satisfaction of certain conditions by the parent company.
Strides Arcolab is a global pharmaceutical company headquartered in Bangalore, India that develops and manufactures wide range of IP-lead niche pharmaceutical products with an emphasis on sterile injectables.
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