SBI Set to Join Global Lenders in Funding Sun Pharma’s $12 Bn Organon Acquisition

State Bank of India (SBI) is preparing to join a group of global lenders to help finance Sun Pharmaceutical's planned $12 billion overseas acquisition of Organon & Co., Bloomberg reported. The state-run lender is expected to commit as much as $1 billion, subject to board approval.

If cleared, SBI will join international financiers including Citigroup Inc., JPMorgan Chase & Co. and Mitsubishi UFJ Financial Group (MUFG) in backing the transaction. The deal, announced in April, is one of the largest overseas acquisitions by an Indian company and marks a major push by Sun Pharma into specialty medicines and global markets.

The financing also signals a shift in India’s lending landscape, as domestic banks return to large acquisition financing after the Reserve Bank of India allowed such activity in February. Previously, Indian lenders were largely absent from takeover funding due to regulatory restrictions and risk concerns.

Deal Structure and Scale

Sun Pharma signed a definitive agreement in April to acquire Organon for about $11.75 billion, including debt, at $14 per share. The offer represents a premium of over 24% to Organon’s pre-announcement trading price. The transaction is expected to close by December, pending regulatory approvals.

Once completed, the acquisition will be Sun Pharma’s largest international deal and is expected to significantly expand its presence in biosimilars, women’s health, and other specialty medicines. Analysts estimate the combined entity could generate about $12.4 billion in revenue, placing Sun Pharma among the top global pharma companies.

Strategic Push and Management View

Sun Pharma said the deal is central to its long-term transformation strategy. Speaking during the company’s Q4 earnings, Managing Director Kirti Ganorkar highlighted recent progress and the role of the acquisition in scaling the business globally.

“Our full-year performance reflects several significant achievements… The recently announced Organon acquisition is expected to further accelerate Sun’s transformation into a leading global pharmaceutical company,” Ganorkar said. He added that the company’s US innovative medicines business has already crossed $1 billion in revenue, while international operations continue to grow steadily.

According to Bloomberg, global lenders are evaluating multiple financing structures for the acquisition. SBI’s potential participation reflects rising interest among Indian state-owned banks in funding large overseas deals, especially as Indian companies increasingly pursue global expansion.