On October 10, 2022, the CCI approved the proposed combination notice filed by Platinum Jasmine A 2018 Trust (acting through its trustee, Platinum Owl C 2018 RSC Limited) (‘Acquirer’) for the acquisition of 3% of the equity shareholding in Intas Pharmaceuticals Limited (‘Target’) from Dunearn Investments (Mauritius) Pte. Ltd.^[1]

The Abu Dhabi Investment Authority (‘ADIA’) is a public institution that is a sole beneficiary and settlor of the Acquirer. ADIA manages a global investment portfolio across more than two dozen asset classes and sub-categories including developed equities, emerging market equities, small cap equities, government bonds, credit, fixed income, real estate, infrastructure, private equity, cash and alternatives. The Target in an unlisted public company that is involved in development, manufacture and marketing of pharmaceutical formulations and is involved in products in key therapeutic segments. Additionally, the Target also manufactures anti dandruff shampoos, acne treatment products and other skin care products, and other haircare products.

Though there were no direct horizontal overlaps between the Acquirer and the Target, Galderma India Private Limited (‘Galderma’), a portfolio companies of ADIA group, is engaged in manufacture and sale of shampoos, acne treatment products, and other haircare products. Thus, there was a horizontal overlap between Galderma and Target in the market of dermatological products at broader level.

It was observed that the overlapping segments of the Target and Galderma could be narrowed down in accordance with anatomical therapeutic chemicals (‘ATC’) 3 or/and ATC 4 level classification. The CCI observed that there existed overlaps in 6 narrower segments, however, the combined market shares of Target and Galderma in each of these 6 narrower segments was less than 10% in terms of value and volume, with an increment of less than 5% in both value and volume. There were other significant players present in each of these markets that would continue to exert competitive restraint in the relevant narrower markets. Thus, the CCI opined that the acquisition would not cause any AAEC in India.

As regards the existing/potential vertical relationships, the CCI noted that APIs required for manufacturing products in any of the identified narrow segments/sub-segments are not manufactured by either Galderma and Intas and consequently there was no vertical integration between Galderma and Intas.

Thus, the CCI approved the acquisition in accordance with Section 31(1) of the Competition Act.

[1] Combination Registration No. C-2022/09/965.