UPDATE 1-India Matrix shares surge on Mylan's Merck deal MUMBAI, May 14 (Reuters) - Shares of India's Matrix Laboratories (MAXL.BO: Quote, Profile , Research) rose as much as 15 percent to a three-month high on news that Mylan Laboratories Inc. (MYL.N: Quote, Profile , Research), which controls the firm, will buy the generics unit of Merck KGaA (MRCG.DE: Quote, Profile , Research).
Analysts said Matrix was expected to play a key role in Mylan's strategy after the $6.6 billion deal, announced on Sunday.
"It looks very positive. I think they would be utilising Matrix to a very large extent for synergies after the merger," said Rohit Bhat, an analyst with Mumbai-based Batlivala & Karani Securities.
Mylan, which edged out Israel's Teva Pharmaceutical Industries (TEVA.O: Quote, Profile , Research) and Iceland's Actavis (ACT.IC: Quote, Profile , Research) to snatch the deal, is buying a business with operations in 90 countries and limited overlap with its own activities.
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India's Ranbaxy Laboratories (RANB.BO: Quote, Profile , Research) had initially expressed interest in Merck's generics business but later said it was "economically unjustifiable".
At 0740 GMT, Matrix shares were up 13 percent at 224.65 rupees while the benchmark index <.BSESN> was up 1.3 percent.
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