New Delhi: US-based Mylan Inc's Rs 5,168 crore proposal to acquire Agila Specialties Pvt Ltd -- a subsidiary of pharma firm Strides Arcolab -- was cleared by the Foreign Investment Promotion Board (FIPB) Tuesday.
"Mylan proposal was cleared," Economic Affairs Secretary Arvind Mayaram told reporters after the meeting FIPB meeting.
Since the Mylan's investment proposal is of over Rs 1,200 crore, it will go to the Cabinet Committee on Economic Affairs for final approval.
According to a 'Share Purchase Agreement', Mylan would acquire entire issued and outstanding share capital of Agila Specialities Pvt Ltd -- a subsidiary of pharma firm Strides Arcolab.
Mylan had moved the FIPB to seek approval for the acquisition.
Agila -- a developer, manufacturer and marketer of high- quality generic injectable products - would be acquired by Mylan directly or through one of its subsidiaries.
The FIPB had taken up the proposal in its July 5 meeting, but kept decision in "abeyance" pending finalisation of policy on FDI in brownfield pharma projects involving transfer of control.
Mayaram, who heads the FIPB, further said that all pending pharmaceutical investment proposals related with brownfield projects too have been cleared.
The FIPB had also kept decision in abeyance on Rs 330 crore investment proposal Symbiotec Pharmalab Ltd, Madhya Pradesh. It has now been cleared.
The proposal of Lotus Surgical Specialties too has been approved by the FIPB.
First Published: Tuesday, August 27, 2013, 18:22