a. Case Study: Sun Pharmaceuticals acquires Ranbaxy: The deal between Sun Pharmaceuticals and Ranbaxy has been completed: The companies have got the approval of merger from different authorities. As per the deal, Ranbaxy shareholders will get four shares of Sun Pharma for every five shares held by them, leading to 16.4% dilution in the equity capital of Sun Pharma (total equity value is USD3.2bn and the deal size is USD4bn (valuing Ranbaxy at 2.2 times last 12 months sales). Reason for the acquisition: This is a good acquisition for Sun Pharma as it will help the company to fill in its therapeutic gaps in the US, get better access to emerging markets and also strengthen its presence in the domestic market. Sun Pharma will also become the number one generic company in the dermatology space. (currently in the third position in US) through this merger and the objectives of the merger and acquisition are:

Sun Pharma enters into newer markets by filling in the gaps in the offerings of the company, through the acquired company

Boosting of products offering of Sun Pharma creating more visibility and market share in the industry

Turnaround of a distressed business from the perspective of Ranbaxy

This acquisition although will take time to consolidate, should in due course start showing results through overall growth depicted in Sun Pharmas top-line and bottom-line reporting.

a. Analyze disadvantages on merger process that may exist between Sun Pharmaceuticals vs Ranbaxy (400 words)