Japanese acquisition in India's Ranbaxy

Abstract

2012),"Daiichi Sankyo's generic (mis) adventure: the Ranbaxy takeover", Emerald Emerging Markets Case Studies, Vol. 2 Iss 8 pp. 1-10 http://dx.If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to examine the rationale and synergies of a Japanese firm's acquisition of India's leading pharmaceutical firm, Ranbaxy, and to answer the following pertinent questions: could Ranbaxy have been able to survive and succeed, had the firm not gone for this strategic sale to a foreign firm? What is the rationale for this strategic sale immediately after undertaking many major acquisitions during the previous two-year period? For what strategic reasons did a Japanese firm pay a premium price for this international acquisition? Design/methodology/approach -An exploratory method was used in this study to analyze the rationale and synergies of the acquisition. The method of case writing has been followed as a design (case situation first, then goes back to the past, then comes back to the current situation). Findings -The findings confirm that Ranbaxy got a premium price for agreeing to be acquired for their share (much higher price than the market price). Japanese firm Dai-Ichi got greater market access and control of Ranbaxy, which were driving factors for them to pay a higher share price for Ranbaxy. Originality/value -This original study gives insight into the points to be taken into consideration while thinking about international acquisitions.

International Mobility, Global Capitalism, and Changing Structures of Accumulation

“…A large consortium of Japanese multinationals is involved, including Sumitomo, Kepco, Hitachi, Nippon Express, Mitsubishi, Mitsubishi Heavy Industries, Itochu, Mitsui, NEC, Tokyo Gas, Japan Gasoline Company, and Toshiba (Indian Embassy, Tokyo, 2011). Daiichi Sankyo of Japan acquired the Indian generic drug manufacturer Ranbaxy for $4.6 billion, equal to 54 percent equity (Paul and Bhawsar 2011). Already Japanese companies are showing interest in purchasing Indian firms.…”

Antecedents of employee alienation and its impact on individual work performance during post-merger integration (PMI)

“…Due diligence is taken during the process, though, only 25%-35% of mergers and acquisitions (M&As) accomplish their desired goals (Marks and Mirvis, 2010). Researchers have acknowledged that financial and strategic motivations do not provide comprehensive explanations of success or failure in M&As (Paul and Bhawsar, 2011;Graebner et al, 2017). A Harvard Business Review report suggested that around 70%-90% of M&As fail (Business Review-Europe, 2015).…”