Deadline for Merck KGaA bids Monday
Teva has been mentioned as a possible buyer of the company’s generic business.
Amir Keidan 8 Mar 07 12:14
The battle for the generics business of Germany’s Merck KGaA (XETRA:MRK) is drawing to a close. “Reuters” quotes a source close to the sale process as saying that nonbinding offers for the company’s generics business, worth at least €4 billion euros ($5.3 billion), are due on Monday. “Reuters” also quotes industry sources as saying that Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) is also eyeing the operation.
“Reuters” says, “In an advance copy of an article to be published on Thursday, the “Financial Times Deutschland” said Bain & Company and Apax Partners were preparing a joint bid, as were KKR and Warburg Pincus. It said Carlyle Group was also mulling a bid, citing banking sources.”
Mylan Laboratories Inc (NYSE:MYL), one of Teva’s main competitors in the US, is a candidate. Iceland's Actavis Group HF (IC:ACT) and India’s Ranbaxy Laboratories Ltd. (BSE:500359) have both said publicly they are keen to acquire the business, and India’s Dr. Reddy’s Laboratories Ltd (NYSE: RDY; BSE: 500124) has also been mentioned as a possible buyer.
The acquisition of generic pharmaceutical companies has always been one of Teva’s growth strategies. Its most recent acquisitions were Ivax Corporation in early 2006, and Sicor. That said, Teva is mentioned almost as a matter of course whenever a generic company is rumored to be up for sale. Teva has been mentioned in connection with the purchase of a Turkish company and as contemplating acquisitions in India.
Reports that the generic business of Merck KGaA was up for sale emerged early this year, and were confirmed by the company a few weeks later. Merck said that the sale was a strategic measure as part of a company restructuring. The company’s leading products include an inhaler for chronic asthma and bronchitis, and an injection against allergic reactions.
Published by Globes [online], Israel business news - www.globes.co.il - on March 8, 2007
