Sun Pharma shares jump 7 pc; market valuation surges by Rs 27,306 cr

Shares of Sun Pharmaceutical Industries Ltd on Monday jumped 7 per cent following announcement that the firm will acquire US-based Organon & Co in an all-cash deal at an enterprise valuation of USD 11.75 billion in one of the largest acquisitions by Indian firms overseas. The stock climbed 7.03 per cent to settle at Rs 1,733.80 on the BSE. During the day, it jumped 9 per cent to Rs 1,766.65. At the NSE, the stock surged 6.97 per cent to end at Rs 1,733.50. The company's market valuation edged higher by Rs 27,306.64 crore to Rs 4,15,986.90 crore. The stock emerged as the biggest gainer among the Sensex and Nifty firms. The 30-share BSE Sensex jumped 639.42 points or 0.83 per cent to settle at 77,303.63. The 50-share NSE Nifty climbed 194.75 points or 0.81 per cent to end at 24,092.70. Sun Pharma has signed a definitive agreement under which it will acquire all outstanding shares of Organon for USD 14 per share in an all-cash transaction with an enterprise valuation of USD 11.75 billion, Sun Pharmaceutical Industries said in a statement on Monday. Organon is a global healthcare company formed through a spinoff from Merck, known as MSD outside of the US and Canada, in 2021. Sun Pharma's acquisition of Organon will be among the top overseas acquisitions by Indian firms, which include Tata Steel's USD 12 billion takeover of Corus for USD 12 billion in 2007 and Bharti Airtel's USD 10.7 billion deal to buy Kuwait-based Zain Telecom's African business in 2010. Commenting on the acquisition, Sun Pharma Executive Chairman Dilip Shanghvi said, ''This transaction represents a significant opportunity for Sun Pharma to build on its vision of 'reaching people and touching lives. Organon's portfolio, capabilities and global reach are highly complementary to our own, and we believe that bringing the two organisations together can create a stronger and more diversified platform.'' Organon Executive Chair Carrie Cox said, ''Following a comprehensive review of strategic alternatives, our Board determined that this all-cash transaction offers compelling and immediate value to Organon stockholders. We believe Sun Pharma is well-positioned to support Organon's businesses, employees and patients globally, and to further advance our commitment to delivering impactful medicines and solutions.''

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