As the merger merry-go-round continues to go round, the latest rumour has Teva Pharmaceutical Industries pursuing Indian generics major Cipla and being turned down.
The Mint newspaper, citing an unnamed consultant and a merchant banker familiar with the matter, claimed that Teva has had two approaches turned down by Cipla since 2012 but it is not giving up. The report says that a third attempt involves an offer of around $6 billion.
Mint goes on to claim that Teva wants to get hold of Cipla’s large manufacturing base in India, its emerging markets presence, and global share in the respiratory drugs area.
A Cipla spokesperson told the newspaper that “we have consistently denied it (rumours about a sale) in the past and continue to do so,”. The company also issued a stock exchange statement saying that “the claim in the news item of an offer made in November is incorrect and no such formal offer was received by the Cipla board”.
Whatever the truth of the matter, India has not escaped the merger mania going on elsewhere and last month, Sun Pharmaceutical Industries agreed to buy Ranbaxy Laboratories from Daiichi Sankyo for $4 billion.
