Regulators in India have given Daiichi Sankyo the go-ahead to move on with its planned takeover of Ranbaxy Laboratories.

The Japanese drugmaker has received clearance from the Securities and Exchange Board of India plus the latter country’s Foreign Investment Promotion Board to acquire a 34.8% stake of Ranbaxy. That involves the stake held in the firm by its chief excutive Malvinder Singh and his family.

The clearances mean that Daiichi Sankyo can now proceed to make an open offer to purchase an additional 20% of Ranbaxy for 737 rupees per share. The offer was initially scheduled to be launched on August 8, but was deferred pending the decision of the Indian regulators and will now run between August 16 and September 4.

Some observers had suggested that the deal could also be stalled by the investigation by the US Department of Justice into allegations that Ranbaxy falsified data on a number of generics. However the firms insisted that the takeover was going ahead regardless of the probe and last week Mr Singh said “we have also been given to understand during discussions that once we complete filing all the information sought by the US Food and Drug Administration, the motion against us will be withdrawn”.

Mr Singh had also claimed that Ranbaxy had “ enough evidence to believe that some negative elements were behind all this controversy” and the firm “will soon take a decision on what appropriate action can be taken against these elements”. However there has yet to be any official confirmation that the D0J investigation has been resolved.