Torrent Pharma Plans Rs 19,500 Cr Deal to Acquire JB Chemicals

Torrent Pharmaceuticals has sought the Competition Commission of India (CCI) clearance for its planned ?19,500 crore acquisition of a majority holding in JB Chemicals & Pharmaceuticals. The acquisition will leave Torrent as the second richest pharma company in India on completion.

The deal involves buying 46.39% of Tau Investment Holdings Pte Ltd (KKR affiliate) for ?11,917 crore and another 2.80% from JB employees. Torrent will also be making an open offer to buy 26% from public shareholders, which will be worth ?6,842.8 crore.

The deal, after the merger of JB Chemicals into Torrent Pharma, is the second-largest Indian pharma deal ever, after Sun Pharma's 2015 takeover of Ranbaxy. It also represents Torrent's strategic intent to grow its presence within therapeutic classes like gastroenterology, dermatology, and diabetes.

The two firms have overlapping businesses in both manufacturing and selling pharmaceutical formulations (FDFs), and JB also has APIs and CDMO business.

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Started in 1976, JB Pharma has become a diversified player, while Torrent Pharma, belonging to the ?45,000 crore Torrent Group, posted more than ?11,500 crore in revenue annually.

The deal comes after KKR bought a 65% stake in JB Pharma in 2020 and took a partial exit this year.

Subject to approval, the deal will dramatically transform India's pharma landscape, cementing Torrent's leadership position and deepening its formulation business and global position.