Sun Pharma buys Ranbaxy in $3.2bn all-share deal

Deal will turn Sun Pharma into the world's fifth-largest generic drug company but some analysts doubt it can turn Ranbaxy around.

Sun Pharma buys Ranbaxy in $3.2bn all-share deal

Sun Pharmaceutical has agreed to buy Ranbaxy Laboratories in an all-stock deal that values the rival Indian company at $3.2 billion, potentially creating the world's fifth-largest generic drug maker.

Under the terms of the deal, Ranbaxy shareholders will receive 0.8 Sun Pharma shares for each Ranbaxy share. Ranbaxy shareholders are expected to own about 14% of Sun Pharma once the deal is concluded.

The exchange ratio implies a value of Rs457...

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