MUMBAI: Indian group Sun Pharmaceutical Industries is in talks to buy leading Swedish drug maker Meda AB in what could result in a $5bn takeover, the Wall Street Journal reported yesterday.
The US newspaper, citing anonymous sources, said the Mumbai-based generic drug manufacturer was in talks with banks to finance the deal.
Sun Pharma, India’s biggest pharmaceutical group by market capitalisation, with annual sales of more than $2bn, is run and controlled by founder Dilip Shanghvi.
Meda, also a maker of branded generic prescription and over-the-counter drugs, is based in Stockholm and is listed on the Swedish stock exchange.
“Meda has a market value of roughly 25 billion kronor in Stockholm, meaning that with a typical takeover premium of 25 percent to 30 percent, it could be worth between $4.5bn and $5bn,” the Wall Street Journal said.
Shares of Sun Pharma, which has a market capitalisation of nearly $20bn, closed down 2.54 percent at Rs1,045.5 yesterday.
Sun Pharma is among the most profitable drug companies in the world and its stock has gained over 35 percent since January.
AFP
