Search the Internet          Tips  Sites: Finance, Investment

ICI India says no objection to Astra IDL deal

The executive director of ICI India said on Friday that it had no objection to its technical collaborator AstraZeneca Plc increasing its stake in Indian drug firm Astra IDL.

ICI India, owned about 51 per cent by ICI Plc, makes chemicals, paints and pharmaceuticals. In December, there was speculation the firm would block the Astra IDL deal, because of fears it would affect its tie-up with AstraZeneca.

"We gave a certificate of no-objection two days ago," ICI India's executive director Daljit Singh said.

"There is a total assurance that on-going agreement on products and technical support between AstraZeneca and ICI India's pharmaceutical business will be fully honoured," he said.

AstraZeneca intends to double its 25.75 per cent stake in Astra IDL, by buying the equal holding of its Indian partner IDL Industries.

A business newspaper reported on Friday that following ICI's certificate, the Indian government had approved AstraZeneca's acquisition of IDL's stake.

Indian regulations require AstraZeneca to obtain a no-objection certificate from its local technical partner before it increased its stake in Astra IDL.

Astra IDL shares jumped 8 per cent to Rs 435.80 on the report, while the Sensex was up 1.06 per cent.

Singh said that ICI India would continue to be the conduit for introducing AstraZeneca's cardiovascular and anaesthetic product range in India.

ICI India's pharmaceutical business contributed about Rs 600 million or some 7 per cent of its overall turnover for the year to March 2000.

ICI shares were little changed at Rs 83.90.

Tell us what you think of this report