Indian Ranbaxy bids for Merck KGaA generics unit

14 March 2007 08:20  [Source: ICIS news]

SINGAPORE (ICIS news)--India’s Ranbaxy Laboratories has confirmed its submission of a non-binding bid for German chemicals and pharmaceutical major Merck KGaA’s generics business “at a value it considers fair and reasonable”.

 

Responding to local media reports speculating Ranbaxy’s bid to be worth $6bn (€4.6bn), the generics producer said that the figure was “factually incorrect and speculative” in a statement late on Tuesday.

 

Merck’s chief financial officer Michael Becker was previously reported to be expecting €5bn from the sale of the unit. 

 

The German major’s generics business raked in sales revenues of €1.8bn last year.

 

One other bid emerging from the south Asian continent for Merck Generics was reported to have come from Mumbai-based Cipla, which has joined the fray as part of a consortium with private equity partners.

 

India’s Business Standard cited the pharmaceutical company’s managing director Amar Lulla to have confirmed its bid, but he was unavailable for comment.

 

Meanwhile, a spokeswoman from another Indian company, Dr Reddy’s Laboratories, told ICIS news that it would not be in the race to buy the generics unit, contrary to media speculation.

 

“The timing was not right as we have recently completed our acquisition of Betapharm,” she said.

 

Betapharm was Germany’s fourth largest generics company, which Dr Reddy’s bought for €480m in cash last year.

 

($1 = €0.76)

By: Keith Tan Liming
+65 6780 4359

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