Germany’s Merck To Buy Sigma-Aldrich For $17 Bn
Drugs and chemicals maker Merck KGaA agreed on Monday (22 September) to acquire US company Sigma-Aldrich for $17 billion in cash to boost its lab supplies business, the biggest takeover in the German group’s history.
The deal helps Merck, 70-per cent controlled by the descendants of its 17th century founder, to focus on supplying major pharmaceutical companies and academic institutions with chemicals and services.
“With this acquisition we have the opportunity to turn one of our most reliable businesses into a core earnings contributor,” said finance chief Marcus Kuhnert.
The deal, which was approved by Sigma-Aldrich’s management and needs approval from more than 50 percent of the target’s shareholders, will see Merck acquire all shares for $140 apiece in cash, a 36 per cent premium over the one-month average closing price, Merck said.
Merck’s new Merck Millipore lab supplies business would gain more exposure in North America, which accounts for half of the world’s life science market, and to Asia’s emerging markets, taking on global players such as Thermo Fisher.
Source: businessworld- Germany’s Merck To Buy Sigma-Aldrich For $17 Bn
