Biocon Ltd is exploring the merger of biosimilars arm Biocon Biologics Ltd with itself, people aware of the development told ET. The potential deal is said to value the arm at around $4.5 billion, they said. The company, which had earlier been considering a listing of the biologics business, is in advanced talks with minority investors for a share swap, said the people cited, adding that it had also looked at a mix of cash and share swap for investors. Biocon Group chairperson Kiran Mazumdar-Shaw said the company is looking at all possible options, including an initial share sale, merger and share swap. Biocon has appointed Morgan Stanley to evaluate the best value creation option, she told ET.