The government has permitted Teva Pharmaceuticals of Israel and its Dutch subsidiary to together invest $8 million to acquire Regent Drugs from J&K Drugs and Pharmaceuticals.
The fresh approval by the Foreign Investment Promotion Board follows an earlier one where Teva Pharmaceuticals Finance, Netherlands BV had been allowed to acquire 100 per cent of Regent Drugs, but the Dutch company made a fresh application to the board since the Israeli parent had become an acquirer now.
The acquisition has been structured in such a way that Teva or its Dutch subsidiary will acquire the entire equity of Regent for $1.06 million. Regent is, in turn, in the process of acquiring JKPDL, sources said on Monday.
Regent is into manufacturing, processing, formulating, buying and exporting all types of drugs and phamaceuticals and by-products. It also deals in basic drugs.
The FIPB approval is subject to nod from the Calcutta High Court where the scheme of arrangement between Regent and JKDPL is pending for finalisation.