The merger/ takeover/ buyout of India’s largest drug maker, Ranbaxy Laboratories, with Japan’s third largest, Sankyo Daiichi, has tickled the New Indian Express on the wrong side. :
“Ironically, in India, Ranbaxy has been much admired for the way it acquired firms all over the world and acquired a truly multinational character….
“Out of the [Ranbaxy-Sankyo Daiichi] deal, the Malvinder Singh family and their associates are all set to become richer by a cool $4.6 billion (or over Rs 19,000 crore).
“What has become abundantly clear from the entire episode is that what matters most in business is profit—patriotism be hanged in this day and age of globalisation.”
Similar questions could have been asked of Thums Up when Ramesh Chauhan decided to sell out to Coca-Cola in the early 1990s.
Should Indian businessmen wear their “patriotism” on their balance sheet and run companies come hell or high water? Is it wrong for Indian companies to merge with or sell out to foreign majors if they are getting a good bang for their buck?