The Foreign Investment Promotion Board (FIPB) on Tuesday approved American pharma giant Mylan Inc's proposal to acquire Agila Specialties Private Limited in a deal worth Rs. 5,168 crore.

Confirming the development, Economic Affairs Secretary Arvind Mayaram said, "Mylan proposal was cleared."

Pennsylvania-based Mylan's huge investment proposal is now awaiting approval from the Cabinet Committee on Economic Affairs (CCEA). It may be noted here that any foreign direct investment (FDI) of more than Rs 1,200 crore has to obtain final approval from the CCEA.

As per the `Share Purchase Agreement,' Mylan will buy entire issued as well as outstanding share capital of Agila Specialities, which is a division of Bangalore-based pharma firm Stride Arcolab.

The Mylan-Strides deal, which is one of the largest transactions in the Indian pharma sector, comes as the Congress-led UPA government is struggling to bring down the current account deficit (CAD). As the deal would bring much-needed foreign currency, it would help ease the country's CAD situation.

The list of other approved foreign investment proposals includes Actis' plan to acquire a stake in Indore-based Symbiotec Pharmalab for around Rs 330 crore.