Dr Reddy's Laboratories has offered Euro 450-million (about Rs 2,500 crore) for acquiring German generic drugs major Betapharm Arzneimittel GmbH.
The deal, if it goes through, will be the biggest overseas acquisition by an Indian pharmaceuticals company.
A European company and Ranbaxy Laboratories are also in the fray, though the amount they have bid could not be ascertained. Indian pharmaceuticals major Wockhardt is believed to have backed out.
When contacted, Dr Reddy's Managing Director and COO Satish Reddy said, "We have nothing to comment on this now."
The United Kingdom-based 3i Group is the majority stakeholder in Betapharm, which is the fourth largest generics drug company in Germany.
Dr Reddy's always had plans to strengthen its European operations, which is the world's second largest drug market. For this, the company is exploring options in Germany and France. Dr Reddy's has cash reserves of Rs 935 crore (Rs 9.35 billion) and it will need to raise money to fund the acquisition.
This can also be Dr Reddy's second acquisition in Europe. In 2002, the company acquired UK-based BMS Laboratories and its wholly owned subsidiary, Aurigene Discovery Technologies for around $12 million.
In November 2005, Dr Reddy's had acquired Roche's active pharmaceutical ingredients business, in Cuernavaca, Mexico, in a $59-million deal.
Indian pharmaceuticals majors Ranbaxy, Wockhardt and Nicholas Piramal have submitted bids to acquire Betapharm Arzneimittel.
Global majors like Teva, Sandoz and certain Turkish companies, along with private equity players, have also bid.
