Merck acquires Sigma-Aldrich for £10bn
22 Sep 2014
Pharma and chemicals giant Merck KGaA has agreed to buy life sciences firm Sigma-Aldrich for approximately $17 billion (£10.2bn).
A statement released today on the Merck website has confirmed the acquisition, suggesting a merger with Sigma-Aldrich will help expand the company’s life sciences arm.
The deal will help Merck increase its presence in North America through its Merck Millipore business, and will “add exposure” to the fast-growing Asian markets.
Karl-Ludwig Kley, chairman of Merck’s executive board, said: “In one of the world’s key industries two companies that fit perfectly together have found each other to present a much broader product offering to our global customers in research, pharma and biopharma manufacturing and diagnostic and testing labs.
“As such, the combination of Merck and Sigma-Aldrich will secure stable growth and profitability in an industry that is driven by trends such as the globalisation of research and manufacturing.”
The deal, which values Sigma-Aldrich at $140 per share in cash, represents a 37% premium to the latest closing price of $102.37 per share last Friday.
According to Merck, the transaction has been unanimously approved by Sigma-Aldrich’s board of directors. A merger agreement will be presented to Sigma-Aldrich shareholders for approval at a special meeting of shareholders.
The acquisition is expected to close in mid-year 2015, subject to regulatory approvals and other customary closing conditions.
Today’s merger follows news in July that US drugs firm AbbVie agreed a £32 billion deal to buy Dublin-based drugs company Shire.
