Cipla Ltd has signed a definitive agreement to acquire a 51 per cent stake in a pharmaceuticals manufacturing and distribution business in Yemen (in turn owned by a UAE based parent company). Given the recent preference to local manufacturing, this secures company's presence in a fast growing market. It already has a leading position in Yemen with over 200 products.

Cipla will pay US$ 21 million for this transaction, with additional considerations to be paid over the next 3 years on achievement of agreed milestones.

Closing of the transaction is subject to completion of certain conditions precedent.