On August 14, 2014, CCI approved the proposed acquisition of Apollo Sugar Clinic Ltd (‘ASCL’) by Sanofi-Synthelabo (India) Ltd (‘Sanofi’). The proposed transaction involved the acquisition of 20% of the equity share capital of ASCL by Sanofi along with certain management rights which led to joint control of ASCL by Sanofi and Apollo Health and Lifestyle Limited, ASCL’s existing promoter. In addition, Sanofi had the option to increase its shareholding in ASCL to 26% during a certain period of time.

CCI noted that the market for diabetes care was characterized by a number of players and there were no overlaps between Sanofi and ASCL. CCI noted that there was a vertical relationship between Sanofi and ASCL but it was complementary and would improve the out-patient health care services for diabetes patients. Accordingly, CCI approved the proposed acquisition observing that it was not likely to cause an appreciable adverse effect on competition in India.

For further information, please contact:

Zia Mody, AZB & Partners
zia.mody@azbpartners.com

Abhijit Joshi, AZB & Partners 
abhijit.joshi@azbpartners.com

Shuva Mandal, AZB & Partners 
shuva.mandal@azbpartners.com

Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com

Percy Billimoria, AZB & Partners 
percy.billimoria@azbpartners.com

Aditya Bhat, AZB & Partners 
aditya.bhat@azbpartners.com