The Cabinet Committee on Economic Affairs today gave its approval to the proposal of M/s Mylan Inc., USA, as recommended by FIPB, to acquire 100 percent of the fully paid up share capital of M/s. Agila Specialities Private Limited.

The approval would result in foreign investment amounting to Rs.5,168 crore approximately in the country.

Background:

M/s. Mylan Inc., USA (Mylan), a fully integrated global pharmaceutical company, was incorporated on August 31, 1970. Along with its subsidiaries, it develops licenses, manufactures, market and distributes generic, branded and specialty pharmaceuticals. It is a publicly held Corporation, listed on the NASDAQ. Mylan has a presence in India through its subsidiaries, M/s. Myland Laboratories Limited, M/s. Mylan Pharmaceuticals Private Limited and M/s. Astrix Laboratories Limited.

Foreign investment approval: complete acquisition of an Indian pharmaceutical company authorised, enabling inbound capital and continuity of operations. Approval was granted for a US pharmaceutical group to acquire 100 percent of the fully paid equity of an Indian pharmaceutical company, authorising the change in ownership and resulting in significant foreign investment; the acquirer already operates in India through subsidiaries and the proposal proceeded through the prescribed governmental clearance route.