Sun Pharma completes merger with Taro

Sun Pharmaceutical Industries on Monday said it has completed the merger of Taro Pharmaceutical Industries with itself in a deal valued at $347.73 million.

As part of the merger, Sun Pharma has acquired all outstanding ordinary shares of Taro other than the shares already held by it or its affiliates, the Mumbai-based drug major said in a statement.

After the merger, Taro is now a private company and wholly-owned by Sun Pharma, it added.Sun Pharma has been the majority shareholder of Taro since 2010.

"This milestone marks a significant step forward for both organisations, allowing us to effectively leverage each other's strengths and capabilities," Sun Pharma Chairman and Managing Director Dilip Shanghvi said.

Last year in May, Sun Pharma issued a letter to the Taro Board with a proposal containing a non-binding indication of interest to acquire all the outstanding ordinary shares at $38 per unit.

Based on Sun Pharma's expression of interest, the Taro Board constituted a special committee of its Independent Directors to evaluate Sun Pharma's proposal.

After negotiations, on December 10, 2023, the special committee of the Taro Board confirmed its in-principle agreement for a revised purchase price of $43 per share and negotiated the merger agreement.

On June 24, 2024, the Registrar of Companies in Israel issued a merger certificate.

The total deal value is $347.73 million, Sun Pharma said.

Headquartered in New York, Taro has business operations in the US, Canada, Israel and Japan. It has manufacturing facilities in Canada (Brampton) and Israel (Haifa).

Primarily focused on dermatology, Taro produces a wide range of prescription and over-the-counter products.

Shares of Sun Pharma ended 1.93 per cent higher at Rs 1,494.75 apiece on the BSE.