Business | Investment

Indian drugs group eyes $5b Swedish pharma takeover

Sun Pharma shares closed down 2.54 percent at 1,045.5 rupees on Friday

  • AFP
  • Published: 18:20 May 31, 2013
  • Gulf News

Mumbai: Indian group Sun Pharmaceutical Industries is in talks to buy Swedish drugmaker Meda AB in what could result in a $5 billion takeover, The Wall Street Journal reported on Friday.

The US newspaper, citing anonymous sources, said Mumbai-based generic drug manufacturer Sun Pharma was in talks with banks to finance the deal.

Sun Pharma, which is India’s biggest pharma group by market capitalisation with annual sales of more than $2 billion (Dh7.3 billion), 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 $4.5 billion and $5 billion,” the Wall Street Journal said.

Sun Pharma shares closed down 2.54 percent at 1,045.5 rupees on Friday.

“We have no comment on media conjecture,” a Sun Pharma spokeswoman told AFP.

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