Ranbaxy + Daiichi Sankyo

Indian pharmaceuticals company Ranbaxy, who was previously known to be the competitor of other pharmaceutical giants such as Merck has been bought by Japanese Daiichi Sankyo for the price of 4.6billion dollars giving Daiichi Sankyo 50.1% of Ranbaxy.
Ranbaxy started off as a family business founded by the grandfather of most recent CEO Malvinder Mohan Singh, with his brother Shivinder Mohan Singh. It wasn’t until Bhai Mohan Singh(the second generation this family line) took over that this company started to grow and expand.
It is said that many Indian companies do not go through acquisitions unless they are in desperate need for help. This is because they are loyal to their family name and can not trust foreigners. However following the previous acquisition of the telecom giant Hutch Essar, Ranbaxy seems to be following its steps to expand the company. Contrary to the customs that have been followed up until now, Indian firms seem to be opening up to foreigner in the interest of prospering.
As the possibility for expansion and growth through these acquisitions might be welcoming, there also is a possibility for these plans to fail. It might have an impect on the employees as some of them might still be conservative on their views about foreigners and although profits might rise n the beginning, if the work force is not fully and happily cooperating with the top management, it is impossible to come out with a long sustained success.
However, the bright side of this deal is that through this acquisition there will be a sharing of the pros of each company making the fusion of both a more complete environment for the growth of the company. While the Indian Ranbaxy will offer its low cost production facilities and global distribution, Japanese Daiichi will offer its expertise on drug building.
This acquisition could be a successful international mission only if the cards are played out properly by the leading managers taking into account everything, starting with the simple issues such as the diverse cultures and geographically dispersed location.

http://ridingtheelephant.blogs.fortune.cnn.com/2008/06/11/ranbaxy-makes-indian-corporate-history-with-daiichi-deal/

entry #14 20100656