Sun Pharmaceutical Industries Limited, along with its subsidiaries and/or associates collectively referred to as 'Sun Pharma,' has entered into a definitive merger agreement with Taro Pharmaceutical Industries Ltd. 

The agreement outlines Sun Pharma's acquisition of all outstanding ordinary shares of Taro, excluding those already held by Sun Pharma or its affiliates, for USD 43.00 per share in cash without interest.

Dilip Shanghvi, Managing Director of Sun Pharma, expressed confidence in the merger, stating, “Over the years, with Sun Pharma’s strategic interventions, Taro has remained a key player in the generic dermatology market in a challenging environment. Post completion of the merger, the combined entity will firmly move forward, leveraging its global strengths and capabilities to better serve the needs of patients and healthcare professionals.”

Uday Baldota, Chief Executive Officer of Taro, affirmed Taro's commitment to delivering high-quality products globally, stating, “This merger will further enable us to compete effectively in our products and markets.”

The purchase price of USD 43.00 per share represents a significant premium, with a 48 percent increase over the closing price of USD 28.97 per share on May 25, 2023, the last trading day before Sun Pharma initially submitted its non-binding proposal to Taro. It also reflects a 58 percent premium to the volume-weighted average price of the shares during the 60 days leading up to and including May 25, 2023. Additionally, the purchase price represents a 13 percent increase over the initially proposed purchase price of USD 38.00 per share on May 26, 2023.

The merger agreement received unanimous approval from the Special Committee formed by Taro’s Board of Directors to evaluate Sun Pharma’s proposal. Independent financial and legal advisors assisted the Special Committee in a comprehensive evaluation, leading to the determination that the merger agreement and per-share merger consideration are fair and in the best interests of Taro and its minority shareholders.

After receiving the unanimous recommendation of the Special Committee and unanimous approval by Taro’s Audit Committee, Taro’s Board, and the Board of Directors of Sun Pharma, the definitive merger agreement has been approved, marking a significant step in the consolidation of the pharmaceutical entities.