The Competition Commission of India (CCI) has approves the proposed combination involving acquisition of shareholding up to 59.38 percent of Unichem Laboratories Ltd by Ipca Laboratories Ltd.

The proposed combination pertains to proposed acquisition of 33.38 per cent stake of Unichem Laboratories by Ipca Laboratories for ₹1,034 crore from one of its promoter shareholders. This deal was announced in April this year.

As the target is a listed entity, the acquirer is required to make an open offer to public to acquire additional 26 per cent stake in Unichem Laboratories.

Accordingly, Ipca Laboratories will acquire 59.38 per cent in Unichem Laboratories as part of this combination.

“CCI approves the proposed combination involving acquisition of shareholding of upto 59.38 per cent of Unichem Laboratories Ltd subject to compliance of undertaking voluntarily submitted by the parties”, the CCI said in a tweet.

Ipca Laboratories is a pharmaceutical company that manufactures formulations and active pharmaceutical ingredients for various therapeutic segments.

Unichem Laboratories Ltd is active in the sale of formulations, active pharmaceutical ingredients, intermediates, and contract manufactured finished formulation dosages, globally.