Sun Pharmaceutical Industries has completed the syndication of debt financing for its US$11.75 billion acquisition of US-based Organon & Co, with State Bank of India (SBI) joining 10 international lenders in the transaction. The financing arrangement was concluded on 30 June 2026.
The syndicated loan comprises commitments of approximately US$1 billion from each of the 11 participating banks, bringing total debt financing to more than USD 10 billion. Sun Pharma will fund the remaining portion through its internal cash reserves.
The three original underwriters — Citi, JPMorgan Chase and Mitsubishi UFJ Financial Group (MUFG) — signed the underwriting commitment before the acquisition agreement was finalised in late April. Eight additional lenders formally joined on 30 June, taking the total count to 11.
SBI is the sole Indian bank participating in the financing syndicate. The other international lenders include HSBC, Standard Chartered, ING, DBS, Crédit Agricole Corporate and Investment Bank, and Sumitomo Mitsui Banking Corporation. SBI’s participation marks one of the first major acquisition financings by a government-run bank since the Reserve Bank of India permitted local lenders to fund corporate takeovers in February 2026.
Sun Pharma Chairman Dilip Shanghvi signed the all-cash agreement to acquire Organon in April 2026. Under the terms, Sun Pharma will acquire all outstanding shares of Organon for US$14 per share. The deal represents the largest overseas acquisition by an Indian pharmaceutical company.
Strategic significance
The acquisition is expected to elevate Sun Pharma into the ranks of the world's top 25 pharmaceutical companies by revenue, with the combined entity projected to generate approximately US$12.4 billion in annual revenue. In the biosimilars segment, the combined company is projected to become the seventh-largest global player [1].
Organon, spun off from Merck in 2021, markets a portfolio of biosimilars through its general medicines business and operates commercial networks across more than 140 countries. The deal also expands Sun Pharma's footprint in China and strengthens its position in women's health, where Organon has a strong presence.
Industry observers note the financing reflects a broader pattern of Indian companies pursuing overseas acquisitions to access new technologies, strengthen global operations and diversify revenue streams.
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Reference
1. GaBI Online - Generics and Biosimilars Initiative. Sun Pharma's Organon deal set to reshape biosimilars competitive landscape [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2026 Aug 20]. Available from: www.gabionline.net/pharma-news/sun-pharma-s-organon-deal-set-to-reshape-biosimilars-competitive-landscape
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