The Zydus Group has decided to merge German Remedies Ltd and Recon Healthcare Ltd into the group's flagship company - - Cadila Healthcare Ltd. Earlier the Zydus Group had acquired the majority stake in the Mumbai-based German Remedies Ltd. With this Cadila Healthcare, became the fourth largest pharmaceutical company in the country with a post-merger market share of 3.82 percent. With the completion of the merger the Cadila Healthcare's turnover is expected to cross Rs 1,030 crore with a profit of over Rs 110 crore.
“We believe that there should only be one single listed entity in the group, especially with respect to companies in similar, competing lines of business. This merger would maximize value for the shareholders of both the companies and achieve complete alignment of interests,� says Pankaj R Patel, chairman and managing director, Zydus Cadila.
According to the reports, the Zoom Properties and the Zydus Pathline, two wholly owned auxiliaries of Cadila Healthcare, will also be merged into it. Post-merger, the 100 percent subsidiary of German Remedies, German Remedies Specialities Ltd, will become a 100 percent subsidiary of Cadila Healthcare.
