M/s Ipca Laboratories Limited, Mumbai, Maharashtra
Case brief
What is this about?
The Competition Commission of India assessed a proposed combination involving the share purchase and open offer by Ipca Laboratories Limited (Acquirer) to acquire Unichem Laboratories Limited (Target). The Commission noted significant overlaps in the Indian API market but found market shares to be low except in specific segments. It approved the combination subject to an undertaking by Unichem not
What did the court decide?
The Proposed Combination is approved subject to compliance with the undertaking voluntarily submitted by the Parties not to re-enter the Indian formulations market for 36 months.
COMPETITION COMMISSION OF INDIA Combination Registration No.C-2023/05/1028
26th July 2023
Notice under Section 6(2) of the Competition Act, 2002 filed by Ipca Laboratories Limited
CORAM:
Ms. Ravneet Kaur Chairperson
Ms. Sangeeta Verma Member
Mr. Bhagwant Singh Bishnoi Member
Order under Section 31(1) of the Competition Act, 2002
- On 18th May 2023, the Competition Commission of India ( Commission ) received a notice under sub-section (2) of Section 6 of the Competition Act, 2002 ( Act ), filed by Ipca Laboratories Limited ( Acquirer ). The notice has been given pursuant to Share Purchase Agreement ( SPA ) dated 24th April 2023 executed among the Acquirer, Unichem Laboratories Limited ( Unichem/Target ) and Dr. Prakash Amrut Mody ( Seller ) (collectively, the Acquirer and the Target are referred to as Parties ).
- The proposed combination comprises of:
Issues for consideration
3 issues framed by the court
Whether the proposed share purchase and open offer combination between Ipca Laboratories Limited and Unichem Laboratories Limited is likely to have an appreciable adverse effect on competition in Indi
Whether the relevant markets for Active Pharmaceutical Ingredients (APIs) and formulations indicate horizontal or vertical competition concerns between the parties.
Whether the compliance with the voluntarily submitted undertaking regarding non-reentry into the Indian formulations market suffices to clear the combination.
Parties & counsel
- applicant
Competition Commission of India
- petitioner
Ipca Laboratories Limited
- respondent
Unichem Laboratories Limited
- respondent
Dr. Prakash Amrut Mody
Coram
Case details
As recorded by the court registry
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