Guwahati: CCI permits merger by absorbing Covidshield Technologies into Biocon Biologics in exchange for Serum Institute Life Sciences acquiring a roughly 15% ownership stake in Biocon Biologics.

The Competition Commission of India (CCI) has approved a merger via absorption of Covidshield Technologies with Biocon Biologics in exchange for Serum Institute Life Sciences acquiring a roughly 15% ownership stake in Biocon Biologics.

The Proposed Combination entails the absorption of Covidshield Technologies Private Limited (CTPL), a wholly-owned subsidiary of Serum Institute Life Sciences Private Limited (Acquirer), into Biocon Biologics Limited (Target) under a merger scheme in exchange for the Acquirer acquiring an approximately 15% equity shareholding in the Target on a fully diluted basis.

The Acquirer is a subsidiary of Serum Institute of India Private Limited that was formed to further research and commercialize COVID-19 vaccines and therapeutics. It is also intended to create vaccinations against other infectious illnesses. The Acquirer is now in the process of establishing its own manufacturing plant.

CTPL is an Acquirer wholly-owned subsidiary that will be merged with Target as part of the Proposed Transaction. It was formed with the intention of marketing, selling, and distributing vaccines, medicines, and other pharmaceutical items.

The Target is a Biocon Limited subsidiary that provides therapy for both chronic and acute disorders such as diabetes, oncology, nephrology, cancer, and autoimmune diseases. Target has research and development centres in Bengaluru and Chennai as well. It has monoclonal antibodies, recombinant proteins, and insulin manufacturing facilities in Bengaluru and Malaysia.