Pharmaceuticals giant Cipla announced on Wednesday its merger with Inzpera Healthsciences Limited, a wholly owned subsidiary of the firm.
The merger comes in the backdrop of deep synergies between the two in manufacturing and marketing of pharmaceutical products, a press statement released by Cipla said.
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The consolidation of business activities following the merger would allow for more efficient utilisation of their resources, greater economies of scale, reduction in overheads and other expenses as well as improvement in various operating parameters, the statement added.
The company said greater integration and flexibility would maximise shareholder value. It also cited greater likely efficiency in cash management and unfettered access to cash flows generated by the combined entity.
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The release further stated that the merger would enable it to rationalise, standardise and simplify business processes, which would allow the elimination of duplication and rationalisation of administrative expenses.
That is likely to result in reduced compliance costs of multiple entities from statutory filings, regulatory compliances, labour laws and its concomitant compliances, the statement said.
