Stock gains strong: Merck is expanding its life sciences business – n-tv.de NEWS

Stock gains strong: Merck is expanding its life sciences business – n-tv.de NEWS

Economy
 

 Monday, September 22, 2014

 
 
 

 
 With a multi-billion dollar acquisition builds the German chemical company Merck’s position in the life sciences market from: Around 13 billion euros can cost the acquisitions of Sigma-Aldrich the DAX companies .
 

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The Darmstadt chemical and pharmaceutical company Merck buys for $ 17 billion (13.1 billion euros), the US-based Sigma-Aldrich. This is a worldwide leading manufacturer of chemical and biochemical research and pharmaceutical materials. The merger created according to the Dax-company Merck one of the leading providers in the worldwide $ 130 billion biosciences heavy industry (Life Science). Merck shares were in the morning, first by 1.2 percent -. However, increased during the morning to a rich growth of around nine percent in the meantime

For the Life Science business of Merck was the takeover “a quantum leap,” said company boss Karl-Ludwig Kley. Merck is for $ 140 per share to acquire all outstanding shares of Sigma-Aldrich in cash. The agreed price represents a premium of 37 percent on the last closing share price of $ 102.37 on September 19, 2014 and a premium of 36 per cent to the average closing price of the previous month.

synergies of approximately 260 million euros expected

The transaction will have a positive impact immediately on earnings per share before special items and the Ebitda margin of Merck, it said. Merck anticipates annual synergies of approximately 260 million euros (340 million dollars), to be fully realized within three years of completion of the transaction.

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The management of Sigma-Aldrich have already approved the transaction. The shareholders of the US company to the agreement on the merger at an extraordinary shareholders’ meeting for approval are submitted.

Merck has nearly 350 years of family ownership. The company made last year with about 39,000 employees generated sales of 11.1 billion euros. Sigma-Aldrich with more than 9000 employees continued in 2013 to the equivalent of about 2.1 billion euros.

  Source: n-tv.de