Daiichi Sankyo acquires generic-drug maker Ranbaxy Laboratories for $4.6 billion

Client(s) Daiichi Sankyo Company, Limited

Jones Day advised Daiichi Sankyo Company, Limited, one of the largest pharmaceutical companies in Japan, in its acquisition of a majority equity interest in Ranbaxy Laboratories Limited, among the world's top 10 generic pharmaceuticals producers and the largest pharmaceutical company in India.

The equity acquisition was a combination of the purchase by Daiichi Sankyo of the entire shareholding of the Singh family, the largest and controlling shareholders of Ranbaxy; the issuance of additional shares and warrants by Ranbaxy to Daiichi Sankyo; and a tender offer by Daiichi Sankyo for the publicly-held shares of Ranbaxy. With a purchase price of Rs. 737 per share, the transaction is valued at US$4.6 billion. In addition to the tender offer for Ranbaxy, Daiichi Sankyo will be making a second tender offer to the shareholders of Zenotech Laboratories Limited, in which Ranbaxy has a significant equity interest.

Structurally and geographically, this is the most complex transaction in India's history and is subject to regulatory approvals from several jurisdictions given the geographic spread of the business of the parties. Upon closing, the transaction will constitute the single largest foreign direct investment in a publicly-listed company in India and will further strengthen Jones Day's presence in the fast-growing Indian market. In addition to M&A representation, Jones Day provided antitrust, intellectual property, and capital markets advice regarding this transaction.