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USAgNet - March 11, 2010
A global leader in animal health will be created as Merial announces it will merge with Intervet/Schering-Plough. The new joint venture will be equally owned by Merck & Co., Inc. (Intervet/Schering Plough)
and sanofi-aventis (Merial). The formation of this new animal health joint venture is subject to execution of final agreements, antitrust review in the United States, Europe and other countries and other
customary closing conditions. The completion of the transaction is expected to occur in approximately the next 12 months.
"The upcoming combination of Merial and Intervet/Schering-Plough is an exciting opportunity for sanofi-aventis to create with Merck a leading company in the Animal Health strategic and growing sector,"
said Christopher A. Viehbacher, Chief Executive Officer of sanofi-aventis. "I am convinced that, together, we will create strong value in bringing broader and improved offerings in both pet and production
animal segments. This transaction represents another consistent milestone in our diversification strategy to bring sustainable growth to sanofi-aventis."
Merck Chairman Richard Clark says the new joint venture delivers on Merck's commitment to customer focus by creating one of the broadest portfolios of animal health products and services in
pharmaceuticals and biologics for millions of customers who include farmers, veterinarians and pet owners.
The entreprise value of Merial has been fixed at $8 billion and the entreprise value of Intervet/Schering-Plough at $8.5 billion, leading to a true-up payment of $250 million to Merck to establish a 50/50 joint
venture. An additional amount of $750 million will be paid by sanofi-aventis, as per the terms of the agreement signed in July 2009.
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