In what is seen as a rare, action-packed, prolonged cross-border acquisition by an Indian company, Sun Pharmaceuticals has acquired the 60-year-old Israel-based Taro Pharmaceuticals.

Indian pharma major, Sun Pharmaceutical Industries' protracted battle for Taro Pharmaceuticals is finally over, marking the culmination of the three-and-a-half-year-old bitter takeover battle. On September 8, 2010, India's most-valued Mumbai-based drug maker won the legal battle for taking control of Israeli pharma major, when the Israeli Supreme Court thwarted an attempt by Taro in 2007 to block Sun's offer to increase its stake. At that time, Sun Pharma had a 36% equity stake in Taro with 24% voting rights; however, now, Sun's subsidiaries have increased their economic interest in Taro to 48.7% and their voting rights to 65.8%. It is indeed the beginning of a new chapter for Dilip Sanghvi, the Chairman and Managing Director of Sun Pharma, as he assumes the role of Chairman of Taro Pharmaceuticals.

Both the companies had been at loggerheads since May 2007, the time when the deal was struck by Sun with Taro. Taro blocked Sun from finalizing the deal on the grounds that the value offered was too low. Sun entered into an agreement with Taro for $454 mn at $7.75 a share in 2007. The bone of contention was the price, which Taro felt was inadequate; Sun argued that it was justified given Taro's financial position at the time of acquisition as also the ambiguity over its financials which were not audited.

The Analyst Magazine, Sun-Taro Deal, Sun Pharmaceuticals, Indian Company, Taro Pharmaceuticals, Indian Pharma Sector, Cross-border Acquisitions, Generic Pharma Acquisitions, Indian Pharma Industry, Financial Reports, Pricewater-houseCoopers, Dermatological Segment, International Markets, Economic Crisis, Canadian Markets.