Tata group closes in to amass on-line medication start-up 1mg

With the acquisition, the Tatas will compete against Mukesh Ambani-led Reliance Industries

The Tata Group may have entered into a deal to acquire the online drug startup 1mg days after receiving a decisive nod for buying BigBasket.

According to an ET Now report, the $ 106 billion group will purchase 65 percent for 780 billion rupees in 1 mg, and value the latter at 1,200 billion rupees. This happens days after the group deposits funds at launch.

Entracker, a technology company monitoring platform, had previously reported that 1 mg had allotted 29,054 forcibly convertible bonds for which Rs 25 crore was received and an additional Rs 75 crore will be infused at a later date.

The acquisition of 1 mg will put Tatas against Mukesh Ambani-led Reliance Industries. It is worth recalling that last August, RIL announced it would acquire a majority stake in Netmeds, the Chennai-based online pharmacy, for cash compensation of around Rs. 620 billion.

Zydus AH sale

A consortium led by Multiples Alternate Asset Management is acquiring Zydus Cadila’s animal health business in India and certain other countries for Rs.2921 billion.

Multiples, along with the Canada Pension Plan Investment Board and Rakesh Jhunjhunwala-led RARE Enterprises, have signed the business transfer agreement and other supplementary agreements with the Animal Healthcare Established Markets Undertaking (Zydus AH).

Zydus AH is the second largest and one of the fastest growing animal health companies in India.

The company is a leader in a range of therapeutic and nutritional products for the livestock and poultry segments. The company employs almost 700 people and has a manufacturing facility in Haridwar. For the fiscal year ended March 31, 2020, the company had sales of Rs 513.3 billion.

The consortium will acquire Zydus AH’s business with a focus on India and certain other countries as a going concern basis through a burglary sale from Zydus Animal Health & Investments Ltd (ZAHL), a wholly owned subsidiary of Cadila Healthcare Ltd (Cadila).