Strides’ shares jump as govt. clears Mylan’s proposal to buy Agila subsidiary
It is believed that Shares of Strides Arcolab opened at a gain of 3 per cent at Rs 919 apiece. This is because of the Indian government’s approval for U. S.-based Mylan Inc’s proposal to acquire the company’s subsidiary Agila Specialties. Mylan has also professionally agreed to acquire Strides Arcolab’s Bangalore-based pharmaceuticals unit Agila Specialties for Rs 5,168-crore.
After complete discussion the Cabinet Committee of Economic Affairs (CCEA) cleared the proposal in a meeting. Though, the acquisition of the injectible medicine business is subject to a number of conditions.
They are also confirmed that the conditions from American firm would have to maintain the level of investment in research and development (R&D) in value terms for a period of at least five years at exact quantitative level recorded at the time of induction of foreign direct investment.
In addition Mylan would have to maintain the production level of National List of Essential Medicines (NLEM) drugs as well as their supply in the domestic market at the time of induction of FDI for at least five years. In conclusion the deal between Mylan and Arcolab was successfully cleared by the Foreign Investment Promotion Board (FIPB) in August this year.