The Competition Commission of India (CCI) has granted approval for Nirma Ltd to acquire a majority shareholding in Glenmark Life Sciences Limited.

The announcement wasmadethrough a CCI post on X.

This transaction values Glenmark Lifesciences at approximately Rs 6,700 crore.

In September of this year, Nirma disclosed its intention to acquire a 75% stake in Glenmark Life Sciences for ?5,600 crore. The decision to sell this stake by Glenmark Pharmaceuticals was aimed at retiring outstanding debt amounting to ?4,340 crore as of FY23.

“Nirma has diversified profile and geographical presence with capacities in India and USA. “The India operations are well diversified across soda ash, soaps and detergents, salt, caustic soda, Linear Alkyl Benzene and other industrial products. It has production facilities in Bhavnagar, Porbandar, Alindra, Mandali and Moraiya. It has soda ash operations in the USA through its wholly-owned subsidiary, Karnavati holdings,” the company stated in its CCI filings.

Glenmark is engaged in the business of development, manufacture and sale of Active Pharmaceutical Ingredients (“APIs”) and intermediaries and contract development and manufacture organisation (“CDMO”) services for APIs. The pharma major has a portfolio of over 130 APIs serving chronic therapeutic segments like cardiovascular disease, central nervous system disorders, pain management, and anti-diabetics. It has a customer base in 75 countries, as per the CCI filings.

Great deal for Nirma 

The deal is believed to be of great significance for the Nirma group which has ambitious expansion plans in the Pharma sector. Earlier this year, Nirma acquired Stericon Pharma from the private equity firm InvAscent in March 2023. Stericon specializes in the production of sterile multipurpose contact lens cleaning solutions, as well as sterile eye and nasal formulations.

With its recent acquisition, Nirma Group has entered the Active Pharmaceutical Ingredient (API) sector expanding its existing pharmaceutical portfolio, which includes products such as injectables, parentals, and ophthalmic items.

Within its healthcare portfolio, Nirma currently holds two significant entities: Aculife Healthcare Pvt Ltd and Stericon Pharma Pvt Ltd. Aculife Healthcare is a leading player in the infusion and injectables sector and boasts a state-of-the-art manufacturing facility spanning 550 acres near Ahmedabad. Its global presence extends to over 100 countries, with subsidiary operations in Brazil and Mexico, as well as offices in Vietnam and the Philippines.