Sun Pharma Acquires Organon for $11.75 Billion

Sun Pharmaceutical Industries Ltd., an India-based pharmaceutical giant, announced on Monday an agreement to acquire U.S.-listed Organon & Co. in an all-cash transaction valued at $11.75 billion on an enterprise basis, marking the largest overseas purchase by an Indian drugmaker. The deal, which offers $14 per share for all of Organon's outstanding equity, represents a 24 percent premium over the company's previous closing price and includes assumption of Organon's $8.6 billion in debt as of the end of 2025.

The acquisition, approved by the boards of both companies, is expected to close in early 2027, pending regulatory approvals and Organon shareholder approval. Sun Pharma plans to fund the purchase through a combination of internal cash reserves and financing commitments from banks including JPMorgan Chase, Citigroup, and MUFG Bank.

Organon, spun off from Merck & Co. in 2021, focuses on women's health, biosimilars, and established medicines, with a portfolio of more than 70 products sold in over 140 countries. The company operates six manufacturing facilities in the European Union and emerging markets, with key revenue markets including the United States, Europe, China,...