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Tokyo/New Delhi - Japan's pharmaceutical Daiichi Sankyo Co reached an agreement with India's Ranbaxy Laboratories to acquire a majority stake, the Japanese company announced Wednesday.

The acquisition was estimated to be worth between 3.4 and 4.6 billion dollars.

Daiichi Sankyo intends to boost cost competitiveness in effective use of manufacturing as well as research and development facilities, especially in India, through the acquisition, the company said.

"While both companies will closely cooperate to explore how to fully optimize our growth opportunities, we will respect Ranbaxy's autonomy as a standalone company as well," Daiichi Sankyo Co President & CEO Takashi Shoda said in a statement.