MUMBAI, India -- India's Sun Pharmaceutical Industries says it is buying troubled generic drugmaker Ranbaxy Laboratories in a $4 billion all-stock transaction.
The combined company will be India's biggest pharmaceutical firm, with annual revenue estimated at $4.2 billion.
Sun Pharma's shares rose 1.7 percent Monday.
Ranbaxy is the leading drugmaker in India's $26 billion generic pharmaceutical industry, but it has faced penalties from U.S. regulators for years. The U.S. has banned imports of drugs from two of its factories because of concerns over quality control.
The companies said Ranbaxy shareholders will receive 0.8 shares of Sun Pharma for each share of Ranbaxy, a premium of 18 percent over Ranbaxy's average share price over 30 days.
Ranbaxy has annual revenue of about $2 billion.
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