Pharmaceutical company Sun Pharma will acquire Israel’s Taro Pharma, will buy the remaining stake for Rs 2,892 crore.

New Delhi. Sun Pharmaceutical Industries on Thursday said it will buy the remaining 21.52 per cent stake in Israel’s Taro Pharmaceutical Industries for Rs 2,891.76 crore. With this acquisition, the way for the merger of both the companies will also be cleared. Sun Pharma said it would acquire 8,086,818 shares (21.52 per cent) for Rs 2,891.76 crore. Pursuant to the definitive merger agreement, the Mumbai-based pharmaceutical company has agreed to purchase all outstanding ordinary shares of Taro for US$43 per share in cash without interest.

Sun Pharma already has 78.48 percent stake in Taro. With Sun Pharma’s strategic interventions over the years, Taro has remained a leading player in the generic dermatology market in a challenging environment, Dilip Shanghvi, Managing Director, Sun Pharma, said in a statement. He said that the combined entity will go from strength to strength to better serve the needs of patients and health care professionals. Taro is committed to providing high-quality products to its patients and customers around the world,” said Uday Baldotta, CEO of Taro. This merger will enable us to compete effectively.