The Foreign Investment Promotion Board (FIPB) has given its approval to the Japanese drugmaker Daiichi Sankyo-Ranbaxy deal following an assurance by department of industrial policy and promotion secretary Ajay Shankar on Monday that there is no problem with the deal. The deal now awaits final clearance from the Cabinet Committee on Economic Affairs (CCEA). As per the prevailing foreign investment policy, any foreign deal that involves transaction exceeding Rs 600 crore undergoes scrutiny by the FIPB under the finance ministry first and then is referred to the CCEA for a final clearance.

Ranbaxy had announced in June this year that the Japanese drug major would be acquiring 34.82% promoters stake in Ranbaxy from the Delhi-based Singh family for $4.6 billion, to strengthen its overseas prescription drug business. Daiichi will also follow it up by buying up to 20% stake from Indian shareholders at Rs 737 per share under the takeover rules for which it has already got the market regulator Securities and Exchange Board of India approval.