The move paves the way for the creation of the largest Indian pharmaceutical company with domestic retail sales of over Rs 7,200 crore.
The combined entity's revenue exceeds the current leader Abbott and its associate companies, which have total Indian retail sales of around Rs 5,030 crore, according to AIOCD-AWACS, a pharma market research company.
One of the preconditions of the CCI order is that Sun Pharma-Ranbaxy must divest seven products to ensure fair competition in the market.
These products, according to a Sun Pharma statement on Monday, constitute less than one per cent of the combined entity's revenues. AIOCD-AWACS says the combined value of all these brands for Sun and Ranbaxy together stands at Rs 137 crore for the 12 months ending October 2014. Individually, Sun's value for the same is Rs 83 crore and Ranbaxy standalone is Rs 55 crore.
Dilip Shanghvi, Managing Director of Sun Pharma, said in the statement the CII order is an important milestone for the transaction.
"It revalidates our view that the Sun Pharma and Ranbaxy businesses complement each other with limited product overlap, and will offer a comprehensive product basket to enable future growth."
Arun Sawhney, CEO & Managing Director of Ranbaxy, said in the statement: "The approval by CCI is a significant step forward. We are confident that post closure, the combined entity will enable sustainable long term growth and deliver immense value for all stakeholders."