Daiichi Sankyo Co. plans to purchase a controlling stake in Ranbaxy Laboratories Ltd. for approximately $4.6 billion, acquiring 50.1% of the company, according to a company statement. Ranbaxy’s chief executive officer, Malvinder Singh, will retain his current position.
   
The purchase would position Daiichi Sankyo third in the generic drug market behind Teva Pharmaceutical Industries Ltd. and Novartis AG’s Sandoz unit. The acquisition also gives the company more reach in emerging regions including India, China and Eastern Europe.
   
Mr. Singh said, “I am delighted to announce our association with Daiichi Sankyo, that puts us on a new and much stronger platform to harness our capabilities in drug development, manufacturing and global reach. Together with our pool of scientific, technical and managerial resources and talent, we would enter a new orbit to chart a higher trajectory of sustainable growth in the medium and long term in the developed and emerging markets organically and inorganically.”
   
The closing of the transaction is subject to approval of shareholders of Ranbaxy and customary regulatory and statutory approvals. The acquisition is expected to be completed by the end of March 2009. Upon completion, Ranbaxy will become a subsidiary of Daiichi Sankyo.