In 2017, Otsuka Pharmaceutical Factory, Inc., a global leader in manufacturing of pharmaceuticals, acquired an additional 20% stake in its Indian joint venture, Otsuka Pharmaceutical India Private Limited, from Claris Lifesciences Limited. This transaction, valued at US$20 million, increased Otsuka’s aggregate stake in the joint venture to 80%, enhancing its control over the company. Majmudar & Partners provided legal advisory services for the deal, advising on various facets of Indian law, including regulatory compliance, corporate governance, antitrust regulations, and requirements under Indian foreign exchange regulations.
Facilitating the Transaction
Majmudar & Partners played a key role in ensuring the successful completion of this joint venture acquisition by providing the following services:
- Regulatory Compliance: Ensured that the acquisition complied with applicable Indian laws, including the foreign exchange regulations applicable to the pharmaceutical sector, allowing Otsuka to increase its stake to 80%.
- Corporate Structuring: Assisted in drafting and negotiating the share purchase agreement and other transaction documents from an Indian law standpoint.
- Taxation and Cross-Border Transactions: Advised on the Indian tax implications of the acquisition, ensuring a smooth financial transaction while adhering to Indian tax laws.
- Post-Acquisition Compliance: Ensured that all post-acquisition regulatory filings and procedural formalities, including filings with the Ministry of Corporate Affairs (MCA) and other regulatory bodies, were completed.
Otsuka Pharmaceutical Factory’s acquisition of an additional 20% stake in its Indian joint venture marks a strategic move to strengthen its foothold in India’s pharmaceutical market. Majmudar & Partners played an important role in facilitating this transaction, ensuring compliance with Indian regulations and delivering a seamless integration process.
With a wealth of experience in handling complex joint ventures and cross-border transactions, Majmudar & Partners provides expert legal counsel for companies looking to expand their operations in India. Contact us today to ensure that your joint ventures are structured for success, backed by our deep knowledge of the Indian regulatory environment.