India's Strides and Matrix call off merger

Indian mid-sized drug makers Matrix Laboratories Ltd and Strides Arcolab Ltd said on Saturday they had called off a merger as they disagreed on valuation but were maintaining business ties. The $850-million merger plan announced on June 1 would have made the unified company the No 7 drug maker in India and strengthened them in a tough domestic market, but it was subject to due diligence and fell through at the valuation stage.
"The intention of the merger was based on a strong business strategy and the potential benefits of integration," a joint statement by the companies to the Mumbai stock exchange said.